Legal Question in Real Estate Law in California

Re: trustee sale

The purchaser at a foreclosure sale must serve the occupants with a Notice to Quit before filing an eviction lawsuit to gain possession of the property. If the occupant is the former owner, a 3-Day Notice to Quit is required. If the occupant is a tenant of the former owner, a 3-Day Notice to Quit is required. If the notice period expires and the occupants have not left, then the new owner may file an eviction lawsuit called an unlawfal detainer action.

Even having an eviction lawsuit filed against you can damage your credit. It is better to leave voluntarily than face the eviction lawsuit.

Re: trustee sale

The buyer is entitled to immediate possession, but must go through the notice and unlawful detainer provisions if the person in possession prior to the trustee sale doesn't relinquish possession voluntarily.

If the person in possession is the trustor (borrower), a three-day notice is sufficient.

Now, suppose the person in possession is a tenant....if the tenant has a lease that was senior to the loan that was foreclosed, the tenancy is unaffected by the foreclosure sale, and the new owner simply becomes the tenant's new landlord.

More often, however, the loan will be senior to the leasehold interest of the tenant, and unless the lease contains a provision, signed by the foreclosing lender, that the lease shall remain in effect, the foreclosure wipes out the lease and the tenant is entitled to notice according to the duration of the lease, usually 30 days.