Foreclosure in 95842>Question Details

Sethyocebella, Renter in

Home we rent will be auction off in a week. How long do we have to move out?

Asked by Sethyocebella, Fri Jan 11, 2013

We just received a notice in out door that the home we have rented for the last 12 years will be auction on January 14th, 2013. I'm a surprised and have no idea how to proceed. How long do we have to move out?
We don't have anything save up so we'll have to start saving up to pay a deposit and rent at a new place. What would happen to the deposit we gave when we moved? Any help and advice will be appreciated.
Thanks

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Answers

10
Hello,

As Michele stated, you, as a tenant, now have many rights and possible options. From being alloted a feasible amount of time to vacate, to incentives, to renting from the new owner. The new owner may provide you with the option to stay and continue to rent, or the possibility of an incentive to vacate, not guaranteed but always a possibility as it has become typical in this market.

In addtion, Assembly Bill 2610 modifies existing state law which was to expire 1/1/2013. Existing law requires a tenant of a property posted with a Notice of Sale (NOS) to be given a notice that the new owner after the foreclosure sale date may enter into a new lease or rental agreement or must be given a minimum 60 day notice to terminate.

Effective 3/13/2013, the new owner is required to give a tenant in a foreclosed property a minimum 90 day notice after the sale to terminate. The effective date of the new law may need to be extended as it cannot be earlier than 60 days after the California Department of Consumer Affairs posts the notice requirements on their website. The 90 day notice requirement is consistent with the existing federal law which is scheduled to expire 12 /31/2014. This new law shall remain in effect until 12/31/2019.

Hope that helps.

Keisha Mathews, REALTOR®
CDPE®, HRC®, HAFA® Certified
"The Short Sale Lady"
Century 21 Landmark Network
(916) 370-1803 cell/direct
(916) 405-3886 fax
keisha.mathews@century21.com
http://www.SheSoldItForMe.com
lic#: 01439130
1 vote Thank Flag Link Fri Jan 11, 2013
I agree with Michele. I wouldnt worry until the Realtor knocks on your door. I am sure the bank will offer you something to break your lease or simply to move within 2-4 weeks.
1 vote Thank Flag Link Fri Jan 11, 2013
Keisha and Ute--if the tenant is in the middle of a lease, however, doesn't the new owner have to honor the lease term? This is a problem I ran into summer of 2012, a home foreclosed with a tenant with a remaining 5 months on lease? Also, to the question poster, "cash for Keys" can vary. The company I worked for were more hard cases about it and offered only $500, so don't count those chickens until the new owner's rep contacts you if cash for keys is even offered.
0 votes Thank Flag Link Fri Jan 11, 2013
Keisha did a good job at describing the new CA law regarding notice of foreclosure sale. I just want to add that the new CA law only applies if the billing address for the mortgage note is different than the property address.
0 votes Thank Flag Link Fri Jan 11, 2013
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
Good day,

Sorry to hereof your situation. There are a few options but they will depend on your Rental Agreement. Are you in a lease or are you Month-to-Month, have you had any conversations with the owner regarding your Security Deposit?

The new owner may want to have you as a tenant so, when someone comes to you and indicates they are the new owner or course ask for and verify they are the new owner. Ask what their intentions are, do they want you as tenants, are they moving into the property etc. This will help determine the course of action you may have. You will have at least 90 days to move if they want the property for personal use. Maybe cash for keys will be an option it just depends on the new owner and their intentions.

All the best, if you would t a more information you are more than welcome to us. It will be our pleasure to assist in any way possible.

Bob Thomas, RMP, CRS, GRI
Owner/Broker
KTB Property Management
8880 Cal Center Dr Suite 400
Sacramento, Ca. 95826
916.217.9180
916.688.7001 Fax
bob@ktbpropertymgmt.com
Please visit us at http://www.ktbpropertymgmt.com for more information.
0 votes Thank Flag Link Fri Jan 11, 2013
Hello, so sorry to hear you found out this way. Here is a brochure to the Inland Mediation Board which is a free legal advice service for tenants and landlords. Please give them a call and see what they advise. You may have options from the bank of cash for keys or a few months with no rent payment to save to relocate. You may consider buying a home with a minimum 580 fico score to qualify for half percent down payment programs which can also contribute towards your closing costs as well. Here are some other links to study and consider. I can email you Rent vs Buy listings. Good luck.

Inland Mediation Board brochure http://tinyurl.com/9q94d4k

http://www.under640ficoscoreloans.com/Pages/RentvsBuy.aspx

http://www.under640ficoscoreloans.com/Pages/Conventional.aspx

http://www.under640ficoscoreloans.com/Pages/CHDAPLoans.aspx

http://www.under640ficoscoreloans.com/Pages/HalfPercentDown.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225
9am till 9pm 7 days
0 votes Thank Flag Link Fri Jan 11, 2013
I am very sorry you have to face this situation and also that you find yourself caught by surprise like that. The notice of trustee sale should have been posted on your door several weeks ago, not just a few days before the trustee sale. It's not uncommon for the trustee sale to be postponed, but of course without knowing your property address, I have no way of checking the status of the sale. If the foreclosure sale goes through on 1/14/2013, the bank or third party buying it at the trustee sale must give you 90-day notice before they can start eviction procedures (Protecting Tenants at Foreclosure Act (PTFA)). They will most likely offer you a cash for keys (somewhere in the neighborhood of $2,500 - $3,000) to get you out sooner and avoid having to evict you. The question of the return of the deposit is a bit unsettled. There is authority that suggests that the bank as the new owner is obligated to pay the deposit back, but I think that rarely happens. You should seek legal advice from an attorney who specializes in landlord-tenant matters.

You can e-mail me your address and I will be happy to check into the foreclosure status for you. You can just contact me through Trulia. Good luck to you.
0 votes Thank Flag Link Fri Jan 11, 2013
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
I am so sorry to hear this. Tenants and landlords may be able to give you more insightful information. Do you have a Realtor to help you find a new home, because I can help you find one?
0 votes Thank Flag Link Fri Jan 11, 2013
It's impossible for anyone to predict accurately in this situation. Worst case, the auction completes next week and the new owners evicts you. Or, maybe the new owner works with you for a while or even lets you continue renting. Or, the auction could be postponed for months or years. With so many variables, no one can know for sure. But, it'll be prudent for you to start saving and be prepared to move.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Fri Jan 11, 2013
You have many, many rights as a tenant during the foreclosure process.
Don't move out until requested.
Their could be financial incentive to get you to move
and if you have a valid and current lease..you may be able to live their through the end of your lease at the same rates.
0 votes Thank Flag Link Fri Jan 11, 2013
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