Mortgagor as Tenant Post-Foreclosure Sample Clauses
The 'Mortgagor as Tenant Post-Foreclosure' clause establishes that, following a foreclosure, the former property owner (the mortgagor) may remain in possession of the property as a tenant rather than as an owner. Typically, this clause outlines the terms under which the mortgagor occupies the property, such as the requirement to pay rent, the duration of the tenancy, and the rights and obligations of both parties during this period. Its core function is to provide a structured transition for both the lender and the former owner, ensuring continued occupancy and income for the lender while giving the mortgagor time to relocate or adjust to the change in ownership.
Mortgagor as Tenant Post-Foreclosure. In the event there is a foreclosure sale hereunder and at the time of such sale Mortgagor or Mortgagor's heirs, devisees, representatives, successors or assigns or any other persons claiming any interest in the Property by, through or under Mortgagor are occupying or using the Property, or any part thereof, each and all shall immediately become the tenant of the purchaser at such sale, which tenancy shall be a tenancy from day to day, terminable at the will of either landlord or tenant, at a reasonable rental per day based upon the value of the property occupied, such rental to be due daily to the purchaser. To the extent permitted by applicable law, the purchaser at such sale shall, notwithstanding any language herein apparently to the contrary, have the sole option to demand immediate possession following the sale or to permit the occupants to remain as tenants at will. In the event the tenant fails to surrender possession of said property upon demand, the purchaser shall be entitled to institute and maintain a summary action for possession of the property (such as an action for forcible entry and detainer) in any court having jurisdiction.