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barquetrecor…, Renter in Sacramento, CA


Asked by barquetrecords, Sacramento, CA Sat Dec 29, 2012


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When you say it has happened before and was "taken care of", what exactly did that look like? Was the home sold and you remained as the tenant? Or was the default cured (loan paid up in full)? That is the only way in which a foreclosure can be completely stopped, aside from the home being actually foreclosed upon or the borrower filing bankruptcy.

Otherwise, the foreclosure possibly has only been "postponed" or "halted" while the borrower is actively seeking a workout program (loan modification, short sale, etc). If that is the case, a foreclosure sale date can be reactivated if the workout program fails.

As of Jan 1, 2012, the California Homeowners Bill of Rights (…) takes effect. These laws were designed to guarantee basic fairness and transparency for homeowners in the foreclosure process. In addition, the new law provides protection for you as a tenant as well. The law states "Purchasers of foreclosed homes are required to give tenants at least 90 days before starting eviction proceedings. If the tenant has a fixed-term lease entered into before transfer of title at the foreclosure sale, the owner must honor the lease unless the owner can prove that exceptions intended to prevent fraudulent leases apply."

If you intend to stay in the home, as a result of the new laws, know that you will be protected for a certain amount of time if the home is foreclosed upon without your prior knowledge. However, you need to get factual information from your landlord as to the state of the property and the foreclosure. Has the loan been paid up (the default cured)? Or is the landlord/borrower in a workout program? Are they current on the terms of the workout program? Do they intend to stay current? If your landlord has been approved for a workout program, if they default on the terms of the workout program the foreclosure can pick up right where it left off.

Also, unfortunately, some landlords are not always honest about the state of their mortgage, wanting to continue collecting rents even when they themselves have not been making their mortgage payments. Not knowing whether this is the case with your landlord, my only recommendation is that you take the information you have learned from the posts in this thread, add to that your past experiences with your landlord, then make an informed decision for your future housing needs based upon that info and what is best for you.

Hope this helps.

Keisha Mathews, REALTOR®
CDPE®, HRC®, HAFA® Certified
"The Short Sale Lady"
Century 21 Landmark Network
(916) 370-1803 cell/direct
(916) 405-3886 fax
lic#: 01439130
0 votes Thank Flag Link Tue Jan 1, 2013
A foreclosure process takes a minimum of 111 days from the first notice to an auction sale date. It is rare that it happens that quickly, but if it does, there are tenancy laws that protect you from the point that a new buyer owns the home.
First, the ultimate answer for you lies with an attorney. You have access to free legal advice at the county courthouse who can review your rental or lease agreement and interpret it for your specific circumstances. But here are some of the factors that might ease your mind:
Unless the home is bought by someone on the courthouse step, always for CASH, and plans to live in the home themselves, you have all kinds of rights. If, on the rare occasion that someone would buy it and plan to live in it, having never seen the home…well bet on the lottery, because I’ve never seen it happen, but it could and you would need to arrange with them to be out sooner…maybe a month?
Most often the home, when it goes to auction on the courthouse steps, it is purchased by an investor, or it goes back to the bank. If it goes to an investor, you have tenancy rights of up to 90 days for termination of a rental agreement. If you have a lease, they will honor up to 1 year for you to continue your lease. If it goes back to the bank, the same rights apply. In some cases, if the new owner wishes to change the move out date, they may offer you some financial incentives to move out sooner.
I would like to suggest to you though, that even if the landlord is not paying their mortgage, and the home is being foreclosed, you have a legal obligation to continue paying your mortgage. That is the legal and ethical thing to do if you have full use of the home as per the contract. The foreclosure process has not affected your use of the property according to your rental agreement.
I work with distressed homeowners all the time, whether for their investment property or home they live in. With the current offerings in negotiating with lenders, there is no reason to allow a home to foreclose. It hurts the homeowner, the neighborhood and all of us taxpayers. Please feel free to call with any questions. I would like EVERYONE to avoid a foreclosure.
0 votes Thank Flag Link Sat Dec 29, 2012
I show a Notice of Default recorded last January. You could go to the Assessor's office and look up the more current information. If you are getting mail with a current date on it, it is likely accurate and contacting your landlord is certainly in order.
Good luck!
0 votes Thank Flag Link Sat Dec 29, 2012
I'd sit tight for the duration. I had a client that got $5k cash for keys to move when the foreclosure settled.
0 votes Thank Flag Link Sat Dec 29, 2012
the property in question does not appear AT THIS TIME to be in a foreclosure, nor a pre-foreclosure status. that being said, if this is an on-going issue of concern, you may need to consider your options. I can meet with you to discuss if now is a the right time for you to consider home ownership. Give me a call or email. Happy New Years
0 votes Thank Flag Link Sat Dec 29, 2012
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