With all the rental properties on the market, you may find yourself paying rent to a landlord who is in default of their mortgage. Imagine your surprise coming home one day and you see on your front door a notice of default that is intended to go to your landlord – the homeowner. If this happens to you, you may ask yourself the question, “are my rent payments being made for nothing since the landlord is not making their mortgage payments?”
To answer this question you must put your question into proper perspective. Are you trying to buy a home using a VA loan, FHA loan or some other loan program, or are you just wondering about making your rent payment for some other reason?
As a person looking to qualify for a mortgage, you will definitely need to keep paying the rent. Often as part of qualifying for a mortgage you may be asked to provide cancelled checks of your rent payments. Typically, if you need to provide cancelled rent checks you will need to show at least 12 months. For mortgage qualifications, housing payments (either as a mortgage payment or as a rent payment) are one of the most important credit requirements. If you make your rent payment or mortgage payment on time qualifying for a mortgage will be a lot easier.
In reference to making your rent payment – if at all possible you want to make sure you make your payment with a check. This is the strongest proof you have of making your payments. Cash receipts and landlord letters are not always accepted.
If you are not trying to qualify for a mortgage you should consider the idea that you have a legal requirement to the landlord to continue making payments. In general, your lease agreement legally obligates you to make your rent payment. If you stop making your payments, you could possibly be evicted. If you have a question about the legalities of your state and your situation then you should contact a real estate attorney licensed in your state to determine your exact legal standing.
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