FYI, I was advised by a broker and real estate agent that the house was probably going to foreclose and not to pay the owner or his mother another cent!
Brokers and real estate agents are not qualified to give this type of advice.. and they shouldn’t be giving it.
Well, the mother saved it from foreclosing with the senior lien holder, but now the son will not pay his mother and who’s to stop her company from foreclosing.
Who is to stop her from foreclosing? Only if the son comes up with the money! This is why I mentioned you have to follow property and contract law. You have a situation where both could be demanding the rental payment. The question is, who gets it. I would recommend that the mother take immediate action on the property. Until she does, it looks like the son(owner) gets the rent, not the mother(second lienholder), even in spite of the Deed of Trust. The way the trust is worded, it looks like she is trying to save him from himself. You don’t want to get in the middle of that.
In addition, the mother(second) can’t have it both ways: Please understand, we are NOT a Property Manager and we are not responsible for any repairs to the property during this rent assignment period until notified to the contrary.
If you are a property manager, you can evict and demand rent. If you are only the lien holder you can only demand payments from the one who the loan is with, not any tenant on the property. If you are not the property manager or owner, you do not have the power to evict.
The real kicker here is that they are mother and son and both are demanding payments from the tenant instead of handling it between them. They will really NOT want this to go to court because the judge would not look well on their behavior.
