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Bankruptcy Michigan – What happens to the rent money when your rental property is foreclosed on in Michigan?

Michigan Bankruptcy and Rental Property Rent Money.

After you file for bankruptcy in Michigan, the rents from your rental property become property of the estate. The trustee exercises full authority and control over those rent monies. The only way that the mortgage company can get control of the rents is to file a motion with the Bankruptcy court to enforce the rents and profits clause in their mortgage agreement.

Once the order allowing the mortgage company to receive the rent monies, the rent is no longer property of the estate and the mortgage company is entitled to receive it.