Legal Question in Landlord & Tenant Law in California
House I'm renting going into foreclosure
My landlord passed away a few days ago, his spouse has not been paying the mortgage and is losing the house to an auction, she says. Do I have to continue paying her rent if she's not paying the mortgage? What are my options and can I be evicted?
3 Answers from Attorneys
Re: House I'm renting going into foreclosure
I agree with Mr. Gibbs and Mr. Cohen. Follow their advice.
Re: House I'm renting going into foreclosure
If you are still living in the house, you must still pay rent. If you are on a month-to-month lease, she should technically give you notice sixty (thirty if you have lived there less than a year) days prior to the auction that she is terminating your lease, but irrespective, the foreclosure sale automatically terminates your lease with her. If you have a term-lease and the foreclosure terminates it prior to the expiration of the lease, in theory the landlord could be held liable for breach of the lease, but that's a pretty rare situation. Until the foreclosure sale takes place, as long as you live in the house, you must continue to pay rent. Her losing it in foreclosure really doesn't affect you one way or another. When the bank forecloses, they used to give you notice to move immediately, then file an eviction action if you didn't leave. They used to be able to have you out very quickly. After a new law was passed in early July, the banks now have to give you 60 days notice after they foreclose, and you'll have to move at the end of that 60 days, or again face an eviction. There is nothing in the new law that speaks to whether you have to pay rent to the bank, but the absence of that language leaves it up to the bank to decide. I suspect that some banks will not be charging rent during that 60 days because it would then establish a new tenancy. I hope this helps.
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Re: House I'm renting going into foreclosure
Mr. Gibbs does't mention that eviction is not automatic. Some banks prefer that a tenant remain at the property to keep vandals away and to have an income stream. If you have a good relationship with the wife you might be able to find out whom to contact once the foreclosure hapens to try to stay, if the bank agrees. Good luck!