Legal Question in Landlord & Tenant Law in California

You are dead-on with the security deposit, though I would still sue the landlord for return of the deposit as outlined below.

If the home goes by foreclosure, then you have some protection even as month-to-month tenants. The Protecting Tenants at Foreclosure Act of 2009 requires that whomever owns the home post-foreclosure cannot simply evict you. They must give you a 90 day notice to move out, and you don't have to move until that time is up. You do not, however, have the right to stop paying rent. You must pay rent - to the current landlord, or the new buyer after foreclosure, until you move out. Sometimes, if you are fortunate, the buyer at foreclosure will pay you some money to get out before the 90 days are up - it's referred to as "Cash for Keys," and can sometimes put a couple of thousand dollars in your pocket to help you move if you can get out before the 90 days you legally have to stay in the house.

If they are attempting to short-sale the house, you are only required to give the realtor access after you have been given "reasonable" notice. They can't show the house constantly - they have to be reasonable, but you do have to make it available on reasonable notice. You do not, however, have to clean or do anything to help them sell it. Where you have some leverage, however, is in that fact - you don't have to do anything to help them sell it. I would talk to your landlord. If s/he wants to sell it, tell them you will agree to help show the house, keep it clean, etc... in return for a substantial reduction in your rent. Start at 50% off your current rent in return for making the house available on 24 hours notice, and that it will be clean. Otherwise, they must given you longer notice, and the place may not be clean when it is shown. Also, be sure to put valuables away, and have an inventory of all of your stuff so that if anything is stolen, you can prove it.

Finally, after the house is sold or foreclosed, your current landlord must give you a written accounting for the use of your security deposit within 21 days. If they do not, or don't notify you that the new owner has the security deposit, then you can sue them in small claims court and probably prevail. The problem, of course, is that you now have a judgment against an individual who just lost their home and may file bankruptcy. Good luck - this is a terrible problem throughout California.

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