The place I rent is in foreclosure. What are my rights?

Tenant Rights 3 views 1 answers
I have a month to month agreement. On Feb 9, my landlord let me know he was not moving to the area and I could stay as long I a wanted. I found out in March that on Feb 12, the place went into foreclosure. He does not know that I know. My friends(even ones in the real estate biz) are telling me I should quit paying rent and save as much money as I can since I will have to move. I am a single mom currently on unemployment. What are my legal rights? I am not one in favor of litigation but I have also been given info that I have grounds to sue him for non-disclosure/fraud/etc. What is true?

Attorney Answer

1
Michael Percy ·
Under California law, the mortgage holder who forecloses on a residential property must give 60 days notice to the actual renter/tenant of the building prior to requiring them to vacate. However, the tenant still must pay rent during the foreclosure process. Generally, before the mortgage holder tries to sell the property at auction to recover the amount of the mortgage, the rent would continue to be paid to the original landlord/owner. After the foreclosure hearing, a receiver will be set up to collect the rent until the tenant is required to vacate the property. The notice of foreclosure given to the tenant must be in writing and must explain to you what your tenant rights are (for example, that you have 60 days before you must vacate the unit), and will tell you the name and address of the receiver who will collect the rent after foreclosure. Be careful about mortgage companies that tell you that you have to vacate earlier than 60 days, or that offer you money to vacate early. It is OK to accept their money and leave earlier than 60 days if you think it is a good deal for you, but they cannot evict you earlier than 60 days if you refuse their offer. As far as suing your landlord for non-disclosure or fraud, I doubt that you would have much success since his failure to tell you about the foreclosure would have to have harmed you in some way. The fact that you are on a month-to-month rental agreement means that either you or your landlord could give notice to the other that they want to end the rental arrangement at the end of 30 days. The fact that the property is being foreclosed and that you might be told the rental agreement will be terminated by the mortgage holder rather than by your old landlord really does not change your situation to your harm. Just be sure that you do not pay the former landlord the rent money once you receive written notice that the mortgage company has named a receiver to collect the rent. Good luck!
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