Legal Question in Landlord & Tenant Law in California

Re: Landlord entering Foreclosure: 7 year lease option to buy

Upfront, you're welcome for the response, however, you are not likely to be happy with it. First, your lease-option is entirely dependent upon the current homeowners rights of ownership in the property. When/if he loses the property in foreclosure, your rights with respect to the property itself are extinguished along with his. Unless a memorandum of lease-option or option was recorded against the property prior-to the recordation of the mortgage (deed of trust), any right or claim you have to the property is going to be gone on foreclosure. With respect to the repairs, any attorney will need to review your agreement with the landlord, but once the property is foreclosed, again, even if you could place a lis-pendens or some other lien or cloud on title, they would be extinguished by the foreclosure. Your options are to either make an acceptable deal that would make you whole, to buy the property from the landlord now by virtue of a short sale (which isn't likely to make you whole), or sue the landlord for damages for breach of the agreement. I'd suggest that you need to contact an attorney in the very near future to review in greater detail your rights.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.