Legal Question in Landlord & Tenant Law in California

From the notice of default, the foreclosure sale usually happens no shorter than 90 days from the notice of default. You should receive notices will list the actual date of the foreclosure. You can call the number listed on the notices to determine if the foreclosure sale has actually taken place. Many times, in loan modifications, it takes longer than 90 days for the foreclosure sale to take place. Sometimes, the owner is able to modify the loan such that the foreclosure sale never takes place. In the event that the foreclosure sale does not happen, you continue paying rent to the landlord/owner.

Once the foreclosure sale has taken place, there is a new owner of the property to whom rent your rent payments are now due. If you paid rent on October 1, and foreclosure happens on October 15, I would try to find the new owner of the premises, and I would send the new owner a letter by certified mail, in which I would offer to continue paying my monthly rent to the new owner starting on November 1.

Right now, as a tenant, I would contact the bank and make sure that the bank knows that you are tenants of the landlord, that you live on the property, and that you would appreciate 90 days notice prior to having to move from your residence. I would send this letter by certified mail - return receipt requested, keeping a copy of the letter for your records. After foreclosure, under Federal law, you should have 90-days notice as long as you meet the following conditions:

1) You are not related to the borrower;

2) The lease was the result of an arm's length transaction; and

3) The rent must not be substantially less than the fair market rent for the property.

Please keep in mind that if you are served with an unlawful detainer lawsuit, you only have five days to answer or to file a prejudgment claim of right to possession, or you could have less time than you think to move from your residence.

Once you have been informed that the foreclosure sale has taken place, I would work with the new owner, and offer to pay your rent to the new owner after the foreclosure sale has taken place. As I said, you should be entitled to 90-days notice prior to being evicted by the new owner.