Assignment of Rents (Residential)?
Anyone have any experience, good or bad, with getting an Assignment of Rents for Residential Properties?
We're trying our hand at this for the first time and were curious what others have done.
For this particular loan, our due diligence revealed that the borrower filed multiple BKs to stop sheriff's sales on multiple rental properties. (He had to convert one to a BK Chapter 11 because he had too much property!) He listed our collateralized property as a rental on his filings, which backed up the servicing comments we read. "Paid to" date is in 2009.
Since the sheriff won't schedule any sales through the rest of the year, we decided to try for a Motion to Assign Rents. Reasons to try this:
1. The sheriff may extend the ban on foreclosures past Jan 1
2. Possibility of getting some income from tenants while we wait
3. More importantly, deny the borrower income to fight us in a potential BK proceeding.
4. Low cost and short timeline to get the motion granted (less than $1000 and 30 days)