Legal Question in Real Estate Law in California

My leased home is collaterial on a defaulted loan; is that reason for breaking l

I am leasing a home from a property management company. I'm six months into a one year lease. I received a copy of a payment demand letter from an attorney representing a bank who holds a note in the owner's name that states the note is in default. The note lists the property I'm leasing as collaterial. I want to get released from the lease now without penalty as I found another more desirable property. Can I use this loan default information to my advantage and negotiate an immediate mutual release without having to find someone else to take over the lease or buy them out of it?


Asked on 10/23/99, 5:25 pm

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: My leased home is collaterial on a defaulted loan; is that reason for breaki

No, if the bank forecloses or someone buys the house it will still be subject to the lease. if the bank takes it they might be willing to let you out in order to sell the house.

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Answered on 10/25/99, 10:12 pm


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