Legal Question in Landlord & Tenant Law in California
What will happen if I stop paying rent to my landlord now that the property is being foreclosed?
2 Answers from Attorneys
The landlord can serve a 3 day notice to pay or quit on you and proceed with an eviction if you do not pay pursaunt to the notice. If he wins the eciction case and has a lock out before the foreclosure sale, you will be evicted. Bottom line is that the landlord is entitled to rent up until the foreclosure sale. The fact that the landlord is not paying the mortgage does not relieve you of your obligation to pay rent. It is possible that the landlord can cure his default prior to the sale and keep ownership of the property. This does put tenants in a diffuclult possition of not knowing if they will be required to move if the property is sold but that is the law. The Protecting Tenants in Foreclosure Act of 2009 was enacted to give tenants some relief from this situation. You should consult an attorney regarding your specific situation.
Mr. Rosales gave a good answer. I would just add that if the foreclosure goes through, the Protecting Tenants in Foreclosure Act of 2009 will give you the right to stay in the property until your lease is up, or for 90 days after foreclosure, whichever is longer. HOWEVER, you only have rights under the Act if you are in good standing as a tenant at the time of foreclosure, and you continue in good standing, including paying rent to the new owner the same as the former owner. If you are not current on your rent at the time of foreclosure you lose your rights under the Act. So what will happen if you stop paying rent now, is either your landlord will evict you before the foreclosure, or the new owner will evict you immediately after.