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What is a mortgage with assignment of rents and promissory note?
A Mortgage with Assignment of Rents and Promissory Note can be used for the financing of rental properties in the state of Florida.
With this document, a borrower essentially grants a lender the rights to collect rent from the rental properties that are being financed. At the same time, the lender waives this right to collect rents, allowing the borrower to do so unless or until the borrower defaults on loan repayments.
In the event of a default on payments, the lender can revoke the right of the borrower to collect rents and assume the collection of rent themselves as long at the lender provides written notice 5 days in advance.
While a Florida Mortgage with Assignment of Rents and Promissory Note can be used for both a conventional and balloon mortgage. However, it is important to note there is a specific language requirement established by Florida state law when this legal document is written in connection to a balloon mortgage.
Published: Jun 7, 2023
Updated: May 26, 2023
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