@ Sean Yang I think you misunderstood the question ,the poster is not forclosed upon (You may want to consider changing your response), leases revert to month to month automatically in most states if the lease is not renewed the same rules are in effect unless the landlord changes them,If they are not acceptable the tenant can move out. Answering the tenants question in a nut shell Ask an Attorney But common sense tells you they still own the property until the bank takes pocession,they still are responsible to pay for the utilities and maintenance.SO ask yourself this question and you will find the answer, Should I take services without paying for them? The landlord still must pay for the utilities you use and eventually will have to even if they are not. The landlord is still responsible to pay the balance not covered by the homes equity if it is forclosed upon, If a short sale is done they are walking away from any equity they had built up or lost due to market condition and circumstances,If you dont pay the rent are you making the losses they are facing any better ? If you were the landlord would you want this done to you? By asking yourself these questions ,the answer will be very clear to you. good luck and I know you will do the right thing.
You should consult an attorney or landlord/tenant counselor.
Mark Burns, Realtor
DRE #00896552 Licensed since 1985
I researched the â€œdistressed marketâ€ in your Zip and as of July 11th:
There are 146 Pre-foreclosure/Notice of Default, 124 Scheduled for Trustee Sale, and 97 Foreclosed REOs homes. Time to foreclose is taking 291 days and there were 5 REO Sales.
Based on the facts provided above:
1) We can loosely guesstimate it will take approximately 19.4 months before distressed REO property CURENTLY held in your zip code will actually be sold (97/5). Actually, probably longer as seven of the last 12 month in this zip the amount sold was zero or one!
2) We can also project once the foreclosure process is initiated it will take approximately 9.7 months before an actual eviction will take place (291/30).
I have to agree with my compadre, Steve Ornellas, whose sage advice rings true! Had this been two years ago (or in 2008-09), your situation would have been fraught with unanswered questions and numerous comments from Realtors to discontinue paying the rent. However, in the past two years, both the State of California as well as the banks have come to understand and create programs that address the problems created by foreclosures of investment property.
As Steve and the other Realtors have already noted, you must continue to pay rent at the home since, until you are notified of a change in ownership, your owner is very much entitled to the rent. If you fail to pay rent, the landlord or homeowner can certainly evict you. Obviously, if the situation makes you uncomfortable, you can always discuss this matter with the landlord, terminate your lease with cause, and move to your next home. However, to ensure that you can leave and reclaim your security deposit upon existing, you should plan to terminate your lease in the manner allowed under your rental agreement--and as you have already mentioned, if you do decide to leave the home, you would prefer to handle this properly with a 30 day notice and then by leaving.
Finally, if you've been renting from this landlord for the past four years, you might consider a dialogue with the owner about the impending foreclosure and find out what he or she has to say that might allay or confirm your concerns and your plans for future housing.
Good luck to you!
Area Pro Realty-PC
You may not be in such a bad situation for the following reasons:
1) While the Notice of Default is the first step in the foreclosure process it's taking much more time than the pre-foreclosure-crisis of 90-121 days to foreclose. Unfortunately, you did not include your zip code otherwise I could have given you an estimate of how long you have.
2) Your Landlord is now looking to Short Sale, that's easily a 2 to 9+ month journey.
3) Your rent has been lowered, and finally
4) Please review the following to be aware tenant protection laws regarding your situation:
CA's "Protecting Tenants at Foreclosure Act" - need to know info!
Whatâ€™s happening to your Landlord does not relieve you from paying rent!
Another suggestion is to contact Project Sentinel where they can offer you some free advice: http://www.housing.org or call
San Jose Fair Housing Consortium
152 North Third Street, 3rd Floor
San Jose, CA 95112
Phone (408) 287-HOME (287-4663)
Fax (650) 321-4173
When you have a question of what is legal, seek legal advice.
http://www.dca.ca.gov/publications/landlordbook/index.shtml Here is the link to the California Tenant Rights Handbook.
Just to give you a perspective if there is a Notice of Default with a sale date that sale date is the date that it is scheduled to go to public auction. However if they are attempting to short sale they could be in negotiations with their bank and possibly postpone the sale until it is sold to a new owner.
I suggest you work with the seller while they are going through this tough time. You have rights and your cooperation may result in a much better experience for all.
All the best to you.
JoANN - 408-379-2001
As mentioned earlier; that could be a long time. If you are uneasy with this situation, your alternative is to move.
Mark Burns, Realtor
DRE #00896552 Licensed since 1985
It all depends on whether or not you have a lease. If you do, it's a binding contract and survives the foreclosure. If you are month to month, you may want to start looking for another place, but there probably isn't a rush because foreclosures take awhile.