question on "assignments of rents"

[mmenz22779]

I have gotten mixed options on this from different lawyers.

Do I continue to collect rent and use the money for other living expenses, or do i pay the bank what ever i can afford.

I have been told from different lawyers to

1) keep the rent money and use it to pay living expenses,

2) you must give the rent money back to the bank as it is their money

I know all about the means test and the including the rent as income.

But I could really use that money to pay off a 401k loan, i will not file until 5-7 months down the line.

Anyone had experience with this?

I just need to know do i do #1 or #2?

[DaisyMae]

Read your note.

It may state specifically that any rent income to that property belongs to the lender. However- it also says you need to male timely payments, so if you are delinquent, you are already out of compliance with your note, so why not stay out of compliance even further, and keep the rent income? To consider also tho- if you are keeping the rent and NOT making the mortgage payments, that might increase your income for purposes of your tax return, since you can't offset mortgage interest against rent income if you are not paying the mortgage.

[StartingOver08]

The reality is that you will only have access to the rents for a limited time period, once your tenants find out about the FC or the BK they usually move or stop paying anyway. Just make sure that any advance rents or sec deposits are accounted for before the filing and/or FC notices. I say, listen to attorney #1

[mmenz22779]

anouther laywer said do #1 he is one of the best he also cost 5k WOW