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Updated over 3 years ago,
How are lenders protected in a lawsuit against landlord?
Hello,
I am thinking about starting a private lending company at some point in the future and was just curious what would happen to the mortgage if a tenant decides to sue the landlord and wins. Assuming the tenant takes over the property, do they also assume the same mortgage payments to the lender? I understand that the Landlord could potentially lose his investment, but would the lender also be penalized for the landlord's negligence?
Thanks in advance!