Legal Question in Real Estate Law in California

No, your lease is not invalidated even if there is a foreclosure. However, it depends at what stage this is at currently. If there has only been a Notice of Default recorded on the house, then you should continue to pay rents. However, after the house has been sold at auction (after the date on the Notice of Trustee Sale), then no, you are no longer obligated to pay the rent. In any event, under the law protecting renters, if you have a lease you cannot be forced to move even after the house has been sold through foreclosure until the end of the lease or 90 days, whichever is later. The exception is if the house is sold at foreclosure to an owner who plans to occupy the property, then you have 90 days to move. In all cases if your lease is a month-to-month lease, you also have 90 days to move out.

Larry L. Doan, Esq.

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Larry L. Doan

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