Legal Question in Real Estate Law in California

It does not seem that the inspection has anything to do with the foreclosure. That kind of notice sounds like a part of a construction defect case, maybe a class action. I'd have to know more to be sure, but it sounds like you should just comply with the notice and not worry about it.

As for the foreclosure, the bank may well not know it is a rental and unless your landlord misrepresented its status on the loan application, the lender doesn't much care. Unless the landlord took out an "owner occupied" loan when the property was already a rental, the bank really couldn't care if its a rental now. As for you, a foreclosure sale is really hardly any different than if your landlord put the property on the market and found a buyer. In fact the only legal difference is if you are a month-to-month tenant, and sometimes a lease tenant as well, you get to stay longer after a foreclosure sale than a regular sale. There is a statute that requires a minimum 90-days for the tenants to vacate after a foreclosure. So month-to-month tenants, and tenants whose leases would run less than 90-days after the sale, get an extension that they would not get in the case of a regular sale, as long as they pay rent to the new owner and abide by the terms of their tenancy. So you only need legal representation if someone tries to force you out before your lease is up, or 90 days after the foreclosure, whichever is longer after the foreclosure.

I agree with Mr. McCormick. The landlord has a right to enter the premises, provided that he has given you reasonable notice. The issue of whether the bank knows it is a rental is irrelevant to you, and is an issue between the bank and your landlord. It would only become an issue if the rights to rents and profits were made a part of the security, and the bank either appoints a receiver, or serves you with a demand for rents. In that situation, you would begin paying rents to the bank, or the receiver or some other agent for the bank, depending on the notice.