Another Landlord Question

[brighteyes]

I'm a landlord and giving up the rental in a chapter 7.

I've read almost everything out there, but I'm a little confused. When you file for BK the terms of the lease are honored. When the house is foreclosed on the terms of the lease will only be honored if the person who bought wants to occupy the home as a primary residence.

If I'm giving up the rental in a chapter 7, then the entire lease would be honored, correct. Or is it still considered a foreclosure, since that still has to happen to get the home out of my name?

The difference is telling the tenants they have 90 days after the sale date (when ever that may be, which would totally stress them out), or telling them that they have until the end of the lease.

[angles]

Does the property have equity? In other words, will the sale of the rental come from the Trustee or the bank? If its foreclosed by the bank they have to honor the rental agreement. I am not sure how it works if a private person buys the home at foreclosure rather then the bank. But, I believe if its sold by the Trustee he will have to provide the tenants with moving money or buy out the lease as it is part of the BK estate.

I assume you are no longer paying the mortgage but collecting rents? Set the rents aside in case the Trustee asks for them.