Legal Question in Landlord & Tenant Law in California

My landlord is currently in foreclosure on the home I am renting.

She has asked me to pay rent, in cash, to her.

I do not have a lease but am on a month to month basis.

She told me she was declaring bankruptcy.

She has not paid her loan since April of 2011 or the HOA fees on my place for the last 4 months.

She is putting my cash in her pocket.

I live in Santa Cruz, CA.

Am I legally required to continue paying her rent, in cash, so she can line her pockets while I am now going to be forced to move, which I can not afford right now?


Asked on 10/28/11, 4:54 pm

3 Answers from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

Once the new owner is in place, it likely will serve you with an eviction notice. At least cooperate in providing a copy of your rental agreement and you might be able to stay for a few months, or the owner might wish to provide you with an incentive to relocate.

Regarding the situation with your present landlord, as he/she is still the owner, you have an obligation to pay rent. Once in bankruptcy, you might call the bankruptcy trustee to obtain instructions on where to pay your rent. If you owe back rent, that might be considered a bankruptcy asset.

Of course, the other issue is whether the landlord would want to spend money on a lawyer to proceed with evicting you when the property might no longer be his/hers in several weeks.

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Answered on 10/28/11, 6:05 pm

Under current law, you will have 90-days to stay once the eviction is completed, provided you are current and remain current on your rent. The buyer at foreclosure may be willing to help you relocate if you move out sooner, i.e., offer "cash for keys." I would recommend against paying the landlord in cash unless you have that as a requirement of the rental agreement. Otherwise you might be accused of complicity in some bankruptcy fraud she is trying to pull, but you most certainly have to pay rent to whomever owns the property while you live there. What they do with it is not your business.

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Answered on 10/28/11, 6:09 pm


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