Legal Question in Real Estate Law in California

Re: REO eviction process

The terms of the foreclosure by the bank at issue will dictate when these tenants need to be legally ousted. As far as you and the rest of the neighbors are concerned, you can file for injunctive relief, and/or damages, under the legal, tortious theory defined as a private nuisance.

Re: REO eviction process

The purchaser at the foreclosure sale must follow the proper legal procedures to evict the tenants. Your best bet would probably be to get the contact information for the new owner and pressure them to speed up the eviction process.

Some law enforcement agencies sponsor programs like Safe Streets Now to help residents abate nuisances in their neighborhood. Nuisances can include an unsightly property, excessive noise, gang activity, prostitution, drug activity, trespassing, CC&R violations, etc. The basis for the program is California law that makes property owners responsible for using their property in an ordinary and reasonable manner that is conducive to the peace and harmony of the neighborhood and does not interfere with the comfortable enjoyment of life and property by others. Property owners violate the law by allowing a nuisance to exist on their property whether they themselves live there or not. Once they become aware of the nuisance they become responsible for abating it.

Under the such a program, the affected residents work with a City representative who guides them through a process to abate the nuisance. The process involves the following steps: collection of evidence, documentation of the nuisance effects, notification and negotiation with the property owner, demand that the nuisance be stopped, etc. If the owner fails to abate the nuisance the residents can file a suit in small claims court where they can describe the nuisance and their efforts to resolve it. In addition to a court cost of $22, service fees range from $15 to $150 depending on the method of service and number of defendants. The judge has the power to order the property owner to abate the nuisance and/or pay monetary damages to the residents.

When the new owner faces the prospect of having 5-10 small claims lawsuits filed against them, they might be prompted into quicker action to legally remove the occupants.

Re: REO eviction process

The term "REO" means "real estate owned" and is a bank accounting term euphemistically referring to property the bank has acquired through foreclosure. Most banks hate having REO because they have probably taken a loss on it and it reflects poorly on their wisdom in extending credit. Most will re-sell it ASAP and most will use third-party managers to take care of it in the interim. In your case, it could be that either the bank or the bank's local property-management firm has decided to let these tenants remain in place, even though a foreclosure almost always terminates an existing lease and gives the new owner the right to proceed with an eviction.

So, with that preface, I'd say the answer to Qestion 1 is that the timeline is as long as the new owner or manager wants it to be, or as short as eviction law and due process allows. Prompt action could move things from 3-day notice to quit to sheriff's removal of tenants in a little over a month, I'd think.

As to Question 2, Mr. Starrett has a good idea. I'd also suggest trying to find out who is managing the property for the new owner and acquainting them with your concerns.