Legal Question in Business Law in California
This is a question regarding real property. Does an owner of real property who has defaulted on their loan have to vacate the property by the trustee sale date? Or can they stay in the property after the trustee sale date until they are notified by the sheriff of a deadline to vacate?
1 Answer from Attorneys
Legally, they are guilty of unlawful detainer effective the moment the trustee's sale deed is delivered to the new owner. Generally you can negotiate a "cash for keys" deal at that point rather than going through an eviction, or if they play hard ball, just move out ahead of the unlawful detainer complaint. If you want to push it, you don't absolutely have to leave until the sheriff shows up and moves your stuff to the street. By that time, however, and even by the time you get a sheriff's notice, you have lost an unlawful detainer lawsuit, have a judgment of for the rental value of the property after the sale against you, along with court costs and interest. If you think the foreclosure is a black mark on your credit, just wait until you see how ugly things get when they go to collect the judgment too.
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