Foreclosure in Rio Linda>Question Details

Charlenem, Other/Just Looking in Rio Linda, CA

I AM A RENTER AND JUST DISCOVERD THAT THE HOUSE IVE BEEN RENTING FOR THE LAST FOUR YEARS IS IN FORCLOSURE.

Asked by Charlenem, Rio Linda, CA Thu Jul 2, 2009

THE RENT IS PIAD EVERY MONTH. MY LLANDLOARD HAS SIAD NOTHING TO ME WHEN I PAID THE RENT THIS MONTH. THE ONLY RESON I KNOW IS MY SON OPEND MAIL ADDRESSED TO THE LANDLOARD. PLEASE TELL ME THAT I HAVE SOME RECOURSE .

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7
Hi Charlenem.

Sue has a point. Don't stop paying your rent. I am suggesting that you first find out if the home you are living in is going into forecllosure first. The landlord might have other property that is in foreclosure, your dwelling might not be the one, even if mail came to that house.

Once you confirm the property is in foreclosue then you will want to start planning what is best for you and your family. By hiring an attorney it might buy you more time in the home, but it will cost you money in legal fees. If this is a good use of your money then perhaps this is an option for you. If you have some free legal assistance in your area that is also an option. You have to decide if you want to put in a good fight and buy yourself more time in the house that eventually will foreclose and the new owner or lender will ask you t leave and eventually you will have to move from.
Or do you want to get prepared for a move and see how you can best set yourself up for success in order to take control of a situation that I am sure is unpleasant at the moment. This is why you must know the facts first. You can start with a free search here.

http://www.rentalforeclosurecom

Good luck! Remember lemons make great lemonade.
0 votes Thank Flag Link Sun Jul 5, 2009
Hannah, I'm sorry but my understanding is that Charlenem should not stop paying the rent, or they are in Breach of their contractual obligation of the rent. Their rental agreement does nto specify whether the landlord is actually paying their mortgage or not. That is a separate contract between the lender and the landlord.

this is an example where it might be best to check with legal resources. Sacramento County offers free legal advice for tenants at the courthouse. I'm not sure of what hours they're open. Or you can call

there is logic, ethics, and the law. They aren't always the same thing but you want to have all of the facts before you decide what to do. Good luck!
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Sun Jul 5, 2009
Dear Charlenem,

You can verify that the NOD (Notice of Default) has been filed by going to this free website.

http://www.foreclosurerental.com

If the home is in foreclosure once the lender foreclosures on you, then you will have 90 days to move. Therefore, you can contact the landlord and in a very mature and polite way (I know you must be emotional but them too) explain that you are aware that the home is in foreclosure and you need to save the money in rent so you can move. Since the landlord is not paying the mortgage anyway. I wish you well, Good luck!
0 votes Thank Flag Link Sun Jul 5, 2009
Sue is correct - there is legislation in CA that protects the tenants of foreclosed properties, and yes, once the lender of their 3rd party representative takes title to the house, they must give you a 90-day notice under most circumstances.

Sue is also correct that there is a new 90-day foreclosure moratorium in CA, however several lenders are indeed exempt from this. Here is a link that details the exempt lenders (many of the larger ones) - http://www.corp.ca.gov/FSD/CFP/pdf/ExemptList.pdf

What recourse do you seek? You might want to speak with an attorney that specializes in landlord-tenant law.
Web Reference: http://www.SacREBlog.com
0 votes Thank Flag Link Sat Jul 4, 2009
Erin Stumpf, Real Estate Pro in Sacramento, CA
MVP'08
Contact
There is a law protecting tenants with a 90 day notice of termination so you will never have an overnight notice to vacate your home HOWEVER you must be able to provide proof that you have continued to provide rent according to your rental agreement.

The foreclosure process itself takes a total of 111 days for the shortest time for a bank to acquire a home under foreclosure. Once a bank owns it, then the 90 days termination would be in effect. Obviously this isn't a tragedy that will happen to you overnight. You do not mention at what point they are in the foreclosure process.

But there's a couple of nuances that I want to make you aware of that might give you some more piece of mind as well. Even if the home had an auction sale date scheduled, there is current law in California, effective in early June that placed a moratorium on all new foreclosures for the next 90 days. the 'sale' of the home through foreclosure most likely will not happen even if it was scheduled in the next 90 days. So if the home is not foreclosed on, the owner is still your landlord.

Once the bank owns it, someone will contact you. You have a 90 notice of termination during which time the bank will instruct you on who to pay your rent to, if at all. They may also offer incentives to move out early but that is at the discretion of your new owner and would be a good deal for you. You would have the option on whether you wanted to move out early, or not.

So I'd suggest you hang in there, keep the place as nice as you can, pay your rent, and be assured that you won't have the rug pulled out from under you. You would, of course, get the most assurance by speaking with a RE attorney, or going down to the county courthouse for free legal advice available to tenants, to understand this even better. Last, I'd suggest you find out exactly the status of the foreclosure on the property. The county recorder's office can help or the legal resource that you use.

Hope that helps!
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Thu Jul 2, 2009
Hi Charlenem,

Speak with an attorney that specializes in Real Estate Law right away. Good luck!

Matt
0 votes Thank Flag Link Thu Jul 2, 2009
Hi.

In order to satisfactorily answer your question much more information is needed. However, if your question is, "I was paying my rent while the landlord was in preforeclosure and not paying his mortgage. Do I have a claim against the landlord for return of those rent monies?" the answer, for those residing in New Jersey tends to be no. The laws of California may be different so it is best you contact an attorney. One of the reasons why the answer tends to be no for New Jersey residents is because their lease is not contingent on the landlord paying his mortgage. However, if the landlord is no longer in possession of the property, i.e. the home was foreclosed on, attempting to collect rent may constitute fraud. Again, it is best if you contact a contempt attorney.

Let me know what advice you receive from legal counsel.
0 votes Thank Flag Link Thu Jul 2, 2009
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