Common use of Mortgage Delinquency Clause in Contracts

Mortgage Delinquency. A. If Owner becomes delinquent under any lien, mortgage, deed of trust, or other encumbrance affecting the Property, Broker may inform any tenant occupying the Property of the delinquency. Once foreclosure action is filed of record, Owner authorizes Broker to allow tenant to terminate the existing lease by giving a 30 day notice to vacate, which will become effective on the date next rent is due. Furthermore, once a foreclosure action is filed of record, Xxxxxx retains the right to terminate the Management Agreement by giving a 30-day notice to Owner. If Owner is nonresponsive to notice from Broker, notice to Owner by Xxxxxx to Owner’s last known address by certified mail with return receipt requested will be considered as sufficient notice to Owner. B. Once foreclosure is filed of record, and Property is currently leased and occupied by a tenant, Owner authorizes Broker to hold all future rent, up to $4,000, to protect itself against loss or claims of tenants, cost of repairs to Property during tenant occupancy, or any other cost deemed necessary to fulfill terms of Lease Agreement. Any remaining funds will be forwarded to Owner of Record upon termination of Lease Management Agreement.