Legal Question in Real Estate Law in California

Re: house being rented under forclosure

I might argue the bank is required to return your deposit to you, or else you can sue them for 3x your deposit if they keep it in bad faith....If you are represented by counsel. You may contact my office.

Best,

Daniel Bakondi, Esq.

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Re: house being rented under forclosure

You are welcome for the answer, however, its not great. The foreclosure terminated your lease by operation of law. Upon the Trustee's sale at which the bank took over ownership, you lost any and all rights to remain in the property. The former landlord must return your full deposit within 21 days of the foreclosure sale (the date on which he lost ownership rights, and your right of occupancy as his tenant was legally extinguished), and he may not retain any amounts for damages, with the possible exception of unpaid rent through the sale date, if there is any. He should turn it over to the bank, who should return it to you when you move, but he won't, so you will have to sue him almost certainly.

The bank can give you a sixty (60) day notice to move, and not have to pay you anything. Any offer they make is just to avoid having to wait sixty days, then file an eviction lawsuit to get you out if you refuse to leave. I'd take the best deal you can negotiate and move right away, as you know for certain you will have to leave at some point - its just a matter of time and economics.

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