BEST ANSWER
FIRST ANSWER
In theory the lender may have a cause of action to receive the rent checks but in reality I have never seen this option done. You would need to read the mortgage itself for the language pertaining to this.
In all cases I have seen (and I have been involved in literally hundreds of foreclosures over the past 18 years) as long as the landlord is still the legal owner of the property, they collect the rent.
Not an attorney and this is not legal advice.
Steele V. Propp
Certified Distressed Property Expert
Sun Nov 1 2009, 16:19