Question by Patrick Murray:
If you could give me a brief explanation of this statement:
" ...As additional security hereunder, Borrower hereby assigns to Lender any of Borrowers rents of the mortgaged property,and upon default the same may be collected without the necessity of making entry upon the mortgaged property..."
Answer By William Bronchick:
This is called an "assignment of rents" and is standard in every mortgage or deed of trust. This would, in theory, allow the mortgage company to collect the rents on your property directly from the tenants if you were in default on the mortgage or the underlying note. In practice, lenders rarely do this, except on multi-unit or commercial buildings.
Disclaimer: The foregoing is not intended to be given as legal, financial or tax advice, but intended for instructional use only. If you require legal, financial or tax advice you should seek the assistance of a qualified professional.
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