What must a lender in Florida do to ensure collection of rents in a foreclosure?
As a general rule, a demand letter may be necessary or advisable to ensure collection of rental payments in accordance with Fla. Stat. § 697.07. Florida Statutes provide that if an assignment of rents is made in a mortgage or separate instrument, the mortgagee shall hold a lien on the rents, which shall be perfected and effective against third parties upon recordation of the mortgage or separate instrument and which is enforceable upon the mortgagor’s default and written demand for the rents. After default and upon written demand by the mortgagee, the mortgagor must deliver to the mortgagee all rents in the mortgagor’s possession at the time of demand or collected thereafter if they are not used for expenses approved by the mortgagee. Once a lawsuit is filed, at a minimum, the statutes authorize a court order requiring the payment of rents into the registry of the court, or other alternative interest-bearing escrow depositories, notwithstanding any asserted defenses or counterclaims by
