Legal Question in Real Estate Law in California

The bank has the same rights as the former owner of the property with respect to this tenant and the home. They have the right to give the tenant reasonable notice of the need to gain access to and inspect the home. The tenant, conversely, has the right to stay in possession of the home, and enjoys the same tenant rights that he or she did prior to the foreclosure of the property under the Federal Protecting Tenants at Foreclosure Act of 2009. Buying the property with the tenant in place is a very large gamble - you are going to end up in an expensive, and timely battle with the tenant to get them out. Even though they have not been paying rent, the eviction may still be very difficult due to the foreclosure.

First, never buy a property without a thorough inspection - inside and out - of the property. If the tenant won't let you in, then the bank needs to take the necessary action to get you access to the property. Second, you need to evaluate all of the documents related to the lease to be sure it is valid and that the tenant actually is entitled to the protections of the 2009 Federal law. Finally, your rights as a buyer are limited to what the bank is willing to do for you. As a foreclosure, the bank doesn't have the same duties to disclose problems with the property, or make it available for you for inspection - you're out on your own when buying a foreclosed property from the bank. The property frankly sounds like a nightmare, and unless it is a tremendous deal, I wouldn't even consider making an offer.

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The bank is full of horse manure. The tenant does not have any federal rights to live the property rent free.