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.
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.
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!
Good luck to you.
DRE # 01326917
Ferdig Real Estate Solutions
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!!
Lyon Real Estate
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.
Realtor Legal Assistant
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!