Collect rent without paying bank

[Michael Soriano]

Can a homeowner who is in foreclosure legally rent out their home and keep the rent money in the state of NJ. I have a home owner who was told by an attorney that she can legally do this. Equity stripping?

[Maryann L.]

How is it equity stripping if there is no equity? If the house is in foreclosure (assuming the homeowner owes more than what it's worth) how is it equity stripping?

Yes, you can LEGALLY collect rent until you're foreclosed upon. It's UNETHICAL in my opinion but you're still the owner so assuming you have leases in place you can stil collect rent. NOW in some of the mortgages I've read it states the homeowner must assign the rents to the lender but NEVER EVER have I seen that happen.