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Updated over 3 years ago,

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2
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Jay Hudson
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How are lenders protected in a lawsuit against landlord?

Jay Hudson
Posted

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!

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