Rentals in 95377>Question Details

Concerned_re…, Renter in 95377

The house we are renting is in foreclosure. Due to be sold at the courthouse in 16 days. What if any rights do I have?

Asked by Concerned_renter, 95377 Wed May 5, 2010

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First, you should find out if there are any rent or eviction control/tenant's right ordinances in your town - there should be a County housing office you can get in touch with to find this out. In some areas with eviction controls, a tenant who stays current on their lease can actually stay in their home indefinitely after a foreclosure (note - if you're in Tracy, CA, I don't believe this applies, but you should check).

Second, it may depend on who your landlord's lender is. Many of the federally-backed loans and various individual banks have their own tenant's rights provisions, under which they provide a certain amount of time following a foreclosure. And many, many lenders offer tenants "cash for keys" to provide them an incentive to move out in a timely manner and without harming the property. After the foreclosure, your landlord's lender will contact you, and you should expect that they may offer you anywhere from a few hundred to a few thousand dollars to move - they don't have to, but many do.

Third, there is a federal Helping Families Save Their Homes Act of 2009, under which tenants who are current on their rent payments have the legal right to stay in their foreclosed home for 90 days following the foreclosure or through the end of their lease. There is currently a bill in Congress that seeks to make this law permanent - it's currently only valid through 2012.

Check out this 'Renters in Foreclosure Toolkit' for tenants at the National Low Income Housing Coalition for more information (link below in Web References). And also, google to find a tenant's law or legal aid organization in your area for more local and personalized advice - many of these groups are non-profits and work for free or on a sliding scale.

Good luck!
1 vote Thank Flag Link Wed May 5, 2010

As a renter, you have tenant rights as outlined by the government of california and the county/city you live in. Here is a good website that explains all your rights in detail. Good luck :)

Kamal Randhawa
0 votes Thank Flag Link Sat May 8, 2010
1. What kind of lease do you have? If you have a long-term lease, the buyer of the house will have to respect your lease, or offer to pay you to move. Get your paperwork ready. One of my friends is in this situation now. He's glad he has a lease to show the foreclosing bank so he is staying for another year. As long as he pays his rent in time, he's in good shape.

2. Is the property currently offered for sale as a short sale? And is there a buyer? Consult with the listing agent to see the status of the contract. Trustee sales may be postponed a number of times while the sale is negotiated

3. If you aren't served an eviction notice, you may not need to vacate (yet). Some foreclosing banks prefer to have tenants in the property for a period of time so that it is maintained to a certain extent, and not subject to vandalism or looting.

4, Depending on where you are, what your situation is, if rent control applies ----you may be entitled to a certain period of notice to vacate, like 30-60 days or even longer. This should give you enough time to find another place to live.

Here's link you may want to check out

Good luck!
0 votes Thank Flag Link Thu May 6, 2010
Yes you do have renter's rights. These rights can vary based upon the time that you have lived in the home, the terms of your lease and so on.

If the bank forecloses then they will be required to honor your rights. Make sure that you have copies of your current and previous leases. You will be able to negotiate your leaving the property and the amount of funds that the bank will be able to give you based upon these forms.

Also, just because your home is set for sale it doesn't necessarily mean that will happen. Alot of times those dates are pushed out depending on the investor. If you happen to have a copy of a notice that was posted on your door there will be a docket number and a phone number for the company that was hired to process the foreclosure. The phone number is usually to an automated line. You can call, enter the docket number and find out if the foreclosure has been postponed. If you don't have a copy, please feel free to private message me and I will be able to provide you with that information.

Good luck.
0 votes Thank Flag Link Thu May 6, 2010
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