There's a new bill in congress intended to protect the home renters from foreclosure. In short it says that the banks must honor the lease that the tenants had with the previous homeowner prior to foreclosure. So the tenants can't be kicked out until the least is over, even if the lease doesn't expire until after foreclosure.
So my question is what's preventing a heavily underwater homedebtor from leasing out his soon to be foreclosed home to a relative/friend for way under market value for a very extended period of time? Say a million dollar home for $100/month for 30years?
Will the bank have to honor this?
So my question is what's preventing a heavily underwater homedebtor from leasing out his soon to be foreclosed home to a relative/friend for way under market value for a very extended period of time? Say a million dollar home for $100/month for 30years?
Will the bank have to honor this?
