Legal Question in Real Estate Law in California

tenent in foreclosure home

The home I rent is in foreclosure. The owner returned 4 mo.s of rent to the management co. He called to see if they had returned it to me. What are my rights to that money.


Asked on 2/04/09, 7:06 pm

2 Answers from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

Re: tenent in foreclosure home

Ideally, the landlord should have taken your money if he still owns the home. If you have the money, put it into a separate bank account and offer it to the new owner (bank) if you would like to stay.

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Answered on 2/04/09, 9:21 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: tenent in foreclosure home

If you are renting a house, the rent must be paid to the landlord, whether or not the landlord is in deep doo-doo with his mortgage man. The rental agreement is a contract. When the landlord is unable to give you the quiet wnjoyment of the property because he has lost title, he will have breached his agreement with you, and you can stop paying... two wrongs don't make a right, the the landlord's breach of his agreement to make mortgage payments does not excuse you from paying rent.

At least, that's the theory. I personally think that when it becomes inevitable that the landlord will lose the property, there is an "anticipatory breach" of the rental agreement that excuses you from the rental agreement, so you could stop paying, but you'd also have to accompany that with moving out.

If the landlord is trying to return rent he's already earned, I think he must have guilt pangs, or would rather you have the money than the lender, and I'd be very apprehensive about accepting the money. Maybe take it if offered, but put it in a separate and untouched bank account until the dust settles.

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Answered on 2/08/09, 1:44 am


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