Legal Question in Real Estate Law in California
I recieved the following e-mail six months ago. I have still not heard from the bank or paid rent to anyone. What should I do?
"I have been notified by my bank that they are foreclosing on my condo that you are residing/renting from me. They will notify you after bankruptcy has been filed/finalized and will give you more than adequate time to move or make other arrangements. I am not sure of what those will be. I have been advised by my attorney and CPA to inform you of this fact and that May's rent will be your return deposit and that further rent will not be paid to me or due. You may want to make arrangements to find other housing or you can decide on whether to wait and hear from the bank before deciding on what you will have to do for housing. I do not know all of the in and outs of how that works. Thank you for being excellent tenants and I wish you the best."
2 Answers from Attorneys
I'm only mildly surprised you haven't heard from anyone. These things are sometimes slow to develop these days, with the "system" crowded with cases. You might investigate the status of your landlord's bankruptcy via www.pacer.gov or inquire of him/her directly. There's no substitute for communication! One thing almost for sure, however--someone, someday, will be expecting you to pay the rent. Keep accumulating the funds to pay it.
I agree with Mr. Whipple. If your landlord has filed bankruptcy, then that triggered an automatic stay that would have prevented or delayed foreclosure. But it also created a bankruptcy estate, in which case there may be an appointed trustee. You will want to find out if there is a trustee, and if so, that may be the person that you pay rent to. It will also help for you to find out the status of the bankruptcy, as many foreclosing banks will file motions for relief from the automatic stay, to proceed to foreclosure. In that situation, the bank will become your new landlord.
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