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Updated almost 15 years ago,
Applicant wants a "foreclosure clause" in lease
They're concerned (understandly) about renting from someone who could go into foreclosure in the future, leaving them high and dry.
I tried to reasurre them that I just bought the property this year, and most of the people going into default bought at the top of the market a few years ago, but they're still nervous.
They want some kind of clause in the lease, but I'm not sure what to put. I was thinking of putting a clause offering a one time payment to them of $500 for moving expenses if I default and they have to leave (which is never going to happen). Are there any pitfalls to this? Thanks.