Foreclosure in Rocklin>Question Details

Barbara, Home Buyer in Lincoln, CA

We rented a house that went into foreclosure. What are my "rights" now, as far as getting out? What is this "Cash for Keys",?

Asked by Barbara, Lincoln, CA Sun Jan 10, 2010

and what is reasonable to expect?

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BEST ANSWER
Hi Barbara,

This may be a simple or complex issue, as such; it never hurts to get a real legal opinion after a complete picture of your circumstance comes into focus. This said, as far as your rights, check out http://www.rentalforeclosure.com it has plenty of information regarding your situation (including checking the status of the rental you live in) and can also link you up with help.

"Cash-for-Keys"
The "traditional" definition and use of the negotiation tactic of "Cash-for-Keys" is a variation of the "deed in lieu of foreclosure" where the owner signs off ownership of the house to the bank. The difference in "C4K" is that the lender will actually pay the homeowner to vacate the home in a timely fashion to mitigate loss from any damage to the property due to a protracted eviction process. "C4K" has also been used in the rental market to incentivize occupants to vacate before their legally set timeline.

Best, Steve
0 votes Thank Flag Link Mon Jan 11, 2010
Barbara it makes a difference if it is in foreclosure or has been foreclosed. If it is in foreclsoure you will want to seek teh advice of an attorney or legal aide with assistance how to proceed, what to pay, what not to pay and how to get your security deposit back. if it has been foreclosed on you can look at it 2 ways., You can fight and ultimately have to move out or you can work with them. If you work with them you will be offered cash for keys, basically you state i can move within 30 or 60 days, you will leabve the property clean and free of damage and they will pay you a certain amount. you can negotiate this amount, they will start low. most single families you shoudl be getting 1500-2000 dollars. Sometimes you can get more, so it is worth the try to ask. By accepting cfk you control you destiny and move on your terms, either way you have been dealt the short end of the stick, especially when you are paying your rent and the landlord isnt using it to pay the mortgage. i hope things work out for you.
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Mon Jan 11, 2010
Hi Barbara,

If you are a tenant in California and the property is foreclosed then you have 90 days after the foreclosure sale to leave. Often the Bank's Realtor will show up on your door and demand that you leave right away, because they want to sell the property and make their commission. However, you have up to 90 days before they can evict you. If you know that you have to move and are trying to get Cash for Keys then you will want to pay attention to foreclosure dates. The day that the property is auctioned off at the court house steps that is when your clock starts ticking for the 90 days. The Realtor will probably show up at your door at some point and you can say something like. "I will vacate the property if you can pay for the moving truck and provide me with the cash I need to move"
If you live in a home that is worth about $150k you can expect to get about $2k, but not something like $6k. Your true answer is how well do you negotiate? This is how much you can expect to get. Good luck!
1 vote Thank Flag Link Mon Jan 11, 2010
Hello Barbara. I am sorry you are finding yourself in this unenviable situation. Unfortunately, it is all too common and that's why a federal law was enacted that preempts state law to the extent that state law provides less protection. Federal law provides that tenants must be given at least 90 day notice. This does not mean that you have to move out in 90 days. However, if you don't move out within the 90 days of having received notice, the bank or third party who purchased at the trustee sale can file an action for unlawful detainer. If you are on a lease (as opposed to a month-to-month tenancy), you are entitled to stay for the remainder of the lease unless the purchaser intends to occupy the property, which is an important exception. If you stopped paying rent, you are subject to a 3-day notice to pay or quit just like any other tenant. The banks offer cash for keys in exchange for your agreement to move sooner and you must leave the place clean. How much the bank will offer as far as cash for keys is concerned will depend on the bank and also how quickly you can move (somewhere between $1,500 - $2,500). The sooner you move, the more money you can expect. Frankly, I would start looking. Yes, it would be a good idea to consult an attorney, but in the end you'll have to move sooner or later. Here's a link to an article that summarizes renters' rights in the event of foreclosure http://www.nolo.com/legal-encyclopedia/article-30064.html


Good luck to you.

Ute Ferdig
Broker-Owner
DRE # 01326917
Ferdig Real Estate Solutions
916-751-1267
Web Reference: http://www.themlshub.com
1 vote Thank Flag Link Sun Jan 10, 2010
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
Hello Barbara,

Is the home just now going into foreclosure or has been foreclosed on?? If it's just now going into default, I would speak with the current homeowner, my understanding is a homeowner cannot collect rent and not make a payment. If it has been foreclosed on, the bank must adhere to your lease or negotiate a fee to be paid upon moving out. Good Luck!!
Brian Frank
Lyon Real Estate
916-402-4697
http://www.RosevilleRocklinRealtor.com
1 vote Thank Flag Link Sun Jan 10, 2010
Hi Barbara,
I work for an attorney, This is not legal advice however it is California Law. If the lender is offering Cash for Keys find out what the most they will give. If you have a year long lease you are entitled to stay till the end as long as your current on the payments.

1) you may want to continue paying your rent so you do not breach your contract.
2) Depending on how long your lease is, if it is a year long lease, you should be able to stay in the property for the remainder of the lease.

3) There may be other factors that arise. How many properties does the owner have, it is a crime if they are doing this and they own 5 properties etc.

You may want to contact them and negotiate a reduced rent. Let them know you know the home is in foreclosure. If they fail to give you back your security deposit you may be able to sue and not only get your security deposti but also bet your attorneys fee's reimbursed and moving expenses.
If they have only owned the home for 1 year, they can get in trouble for Rent Skimming which may end up being even more of a problem for them.

I would definately contact them and get your rent reduced. They arent makeing the mortgage payment. You could also contact your local courts and find legal aid to ask questions.

JoAnna Jensen
Realtor Legal Assistant
1 vote Thank Flag Link Sun Jan 10, 2010
Barbara,

This scenario just repeats itself within the rental market.

Before you do anything, consult a Real Estate Atty! Honestly, many provide "free" consultations.

Many factors come into play. Do you have a lease, etc.

Don't second guess what you should do. Seeking legal advice would save you alot of time and grief.

So sorry, and best of luck!
Web Reference: http://kathyweberhomes.com
1 vote Thank Flag Link Sun Jan 10, 2010
Do you know of a good attorney, if not I do know a great one in Sacramento. Let me know. Ryan
1 vote Thank Flag Link Sun Jan 10, 2010
Thisv problem should be solved by now. I hope you got your deposit back and you know that the person who leased the the property has resposiblity to you also.
0 votes Thank Flag Link Wed Mar 21, 2012
Be reasobable and talk with those who bought the house.
0 votes Thank Flag Link Sun Aug 28, 2011
It really depends on how long you've been there and what your lease looks like
0 votes Thank Flag Link Sun Jan 10, 2010
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