Legal Question in Real Estate Law in California

We are renters in California, we found out that the landlord had put the house up for a short sale early this year but recently found out that its actually going to be auctioned on the 16th of this month. should we pay our rent as we have been or wait for the sale? What rights do we have?


Asked on 8/02/11, 10:37 am

1 Answer from Attorneys

Mark Saltzman, MBA, JD Law Offices of Mark E. Saltzman

Assuming that the auction is a trustee's sale, in a foreclosure, your obligation to pay rent to the landlord does not stop because of the foreclosure. As a practical matter, the landlord may not be too motivated to come after you for rent, if the landlord is losing the property, but the landlord retains that right. If your lease is in writing, the landlord can sue you for the rent at any time, during the next 4 years. You may also get a notice from the creditor that it has an "assignment of rents," entitling it to your payment. The safest route is to pay your landlord, as usual, until the ownership changes.

Then, work out an arrangement with the new owner. Perhaps, you can continue your lease on the same - or even better - terms. If the new foreclosing owner wants to evict you, it must give you 90 days notice.

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Answered on 8/02/11, 1:24 pm


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