Posted by Alex Gurevich, TX on November 13, 1998 at 09:59:05:
>>As far as do the tenants have to move out if the
>> builder goes down, it is my understanding
>>that a lease in place has to be honored whoever
>>ends up with the property.
Not always so. One of the criterias is the senjority. If the lease was signed prior to the origination of mortgage the tenant may have a case of staying in the property. However, in many cases the leases have language where the lease is explicitly made subordinated to the mortgage. If the foreclosure occurs, the lender will have the right to terminate the lease.