Home Buying in Los Angeles>Question Details

bb200486, Home Buyer in Los Angeles, CA

I need to know options for tenants living in a short sale situation

Asked by bb200486, Los Angeles, CA Thu Sep 13, 2012

Help the community by answering this question:

Answers

11
You need to continue paying your rent according with the agrrement that you have with the landlord.
A short sale is the same as any other property. I am sure that you got a good deal in the price, because of the short sale situation.

Best of Luck,

Maria Cipollone

http://www.FlaHomespecialist.com
3 votes Thank Flag Link Fri Sep 14, 2012
I would definately seek advice on this issue. You might be putting yourself into a tight situation depending upon whom you are paying your rent too. i would follow the situation closely and watch when the property actually closes. you might be dealing with different people.
1 vote Thank Flag Link Fri Sep 14, 2012
best to speak with a real estate attorney. Real estate agents are not in a position to give out legal advice on such tricky situations.

Getting higher rents here too!


"NEAL KNOWS LOS ANGELES AREA REAL ESTATE"

WESTSIDENEAL
Neal Grusky
DRE# 01890580
Hpremiere Properties
Real Estate and Financing
10940 Wilshire Blvd. Suite 1600,
LA, CA 90024 | Office:
(800) 652-1768
neal@hpremiere.com
0 votes Thank Flag Link Sun Sep 16, 2012
Your Lease is still valid. If you have time left on your Lease, new owner has to honor. Renewals are again per Lease language, if none present, new owner has right to request you vacate at end of the term. New Owner is liable to you for security deposit refund.
Short sales can take a while to consummate, so I would advise that you start looking for another place to live, be careful, however, because the Lease also binds you to the term.
0 votes Thank Flag Link Fri Sep 14, 2012
Hopefully you have a copy of you lease agreement. See what it says about termination of your lease. Also are you in a rent control unit/ area? Definitely good idea to seek advice from LA housing.

Good luck
0 votes Thank Flag Link Fri Sep 14, 2012
Hi BB:

It all depends upon what type of property you are living in and in what city. In the City of Los Angeles, Santa Monica and West Hollywood, there is rent control.

If you are in a condo unit, you may be subject to the rent control laws. If you are in a single family house, you may not be subject to the rent control laws.

You do however, need to continue paying rent under your rental agreement. If you do not, you may be evicted. Also, there is a termination clause in your rental agreement which will state how many days the landlord needs to give you to vacate the property, 30, 60 or 90 days.

Refer to your rental agreement and also the rent stabilization ordinance, if there is one in your area.

Good luck!

All the best,

Kat Becker, Realtor
Prudential California Realty
katbecker@hotmail.com
0 votes Thank Flag Link Fri Sep 14, 2012
Along with the other answers, I would like to add that although it may not seem 'right' for the owner to continue to collect rent while in turn not making their mortgage payments, that issue is between the owner & their lender. I have had short sale listings where there is a tenant who stays in the property until the new owner moves in.

So long as the tenant had been taking care of the property very very well & had otherwise been paying on time, I always suggest to the homeowner to offer a reduced rental rate so the tenant allows home showings, continues to care for the home & when the time comes, to allow the buyer to perform home inspection, allow appraisers in & what not. In exchange for this, the owner agrees to write a glowing letter of reference for the tenant when they move to another rental.

Another reason for the reduced rental rate is no one is able to let the tenant know exactly when the move out date would be, could be 90 days, 120 days, 60 days, or depending on the experience of the listing agent or bank(s) that are being dealt with it may take another 5-7mos+.

I don't look back on this same Trulia posting for answers after mine. Shoot me an email directly if you would like to talk about this further.

Emily S. Knell
EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Realty ONE Group
100% short sale success ratio
& I can Prove it.
0 votes Thank Flag Link Thu Sep 13, 2012
Options:

1. Continue making your rent payments according to your rental contract and save receipts, or
2. If you're in L.A. City, get advise from http://www.lafla.org/index.php or http://lahd.lacity.org/lahdinternet/ , or
3. make a purchase offer and become the new owner !

Have a blessed day.
0 votes Thank Flag Link Thu Sep 13, 2012
A short sale is no different than a regular sale as far as tenants are concerned. Your rights are governed the lease itself. If you are on month to month, either the existing or new owner may serve you with a notice to terminate which could either be 30 or 60 days depending on how long you have lived there. But if the new owner is satisfied with keeping it as a rental, you can always negotiate a new lease with the new owner or keep it month to month. Otherwise, if you have a term lease, the new owner takes over the lease as the new landlord with your rights under the lease unchanged.
0 votes Thank Flag Link Thu Sep 13, 2012
Yeah, I think it would help to know your options.
0 votes Thank Flag Link Thu Sep 13, 2012
Hi bb200486,

The tenants would need to refer to their lease or rental agreement.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Thu Sep 13, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer