Foreclosure in 92260>Question Details

Chan, Other/Just Looking in Palm Desert, CA

I signed a 1 year rental lease. The owner is looking into short sell due to foreclosure. Will we be evicted?

Asked by Chan, Palm Desert, CA Thu Feb 5, 2009

The owner says that the property isn't in foreclosure although he is behind on his payments. This wasn't divulged to us upon signing the rental agreement. He is looking to sell the house through a short sale. The house was purchased for $340,000.00 but will sell for $140,000.00. We may have an option to buy it. Will we be evicted and what are our rights? We live in California.

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Your lease is a contract in the state of California giving you right to posession under state laws unless you breach the contract. If the house indeed gets a buyer and seller agree to the terms and also gets a short sale approval from one or both banks, then you have the right to the terms of your lease until it expires. The new owner can make a new contract with you or give you notice prior to your lease expiring. If you miss a rent payment or violate the lease otherwise than it is a breach of contract and they can move to eviciton procedures. I am not an attorney so do consult an attorney as there may be something special in your area or something different in your lease.
0 votes Thank Flag Link Thu Oct 15, 2009
Hi Chan,

If you have a chance to buy then you should act fast and let the lender know it. Your Realtor will have access to this information. As far as eviction goes. There are several cases of renters being "evicted" from their houses for fault not of their own just because they have no contract with the "new" owner.
Good luck
Leonardo
Web Reference: http://www.leonardoteam.com
0 votes Thank Flag Link Sat Feb 14, 2009
Chan, you have received great advice so far. There isn't really anything else I can add, except that I have had some specific training in Short Sales, and can generally move them along a little more quickly. I am a Realtor in Palm Desert and I'd be happy to meet with you and help you gather some information to see if you can indeed purchase the property. If not that one, there are plenty of others to choose from. I work in our forclosure center as well as representing buyers and sellers in the standard market.

Please don't hesitate to phone me or email me.

Susan Miulli
Realty Executives Desert Cities
760-408-5141
SusanMiulli@RealtyExecutives.com
0 votes Thank Flag Link Thu Feb 5, 2009
Chan; The answer that Shel-lee Davis gave you is correct. Short sales take a long time. The only worry that I have is that your Landlord might not have given you the complete scenario. You mentioned that the owner told you that he is not in foreclosure, altough he is behind payments. If he is behind payments you have to find out if the Lender filed a notice of default on the property. If the Lender filed a notice of default you have 90 days from the date that the notice was filed and then 21 extra days before the home gets foreclosed. When the home gets foreclosed it goes to the highest bidder at the steps of a Court House but if no one bids, then, it reverts back to the Bank. Unfortunately, the Bank or a new owner will have the right to evict you. I have been hearing that Lenders are giving tenants money for the keys. Also, I read somewhere that Fannie Mae is not evicting tenants. They are respecting their leases. My advice, consult a tenant's attorney. With so much going on they will be able to advice you on your rights as a tenant. Good luck.
0 votes Thank Flag Link Thu Feb 5, 2009
I DON'T KNOW YOUR RIGHTS IN CALIFORNIA BUT IN N.C. THIS JUST HAPPENED TO MY PARENTS TODAY AS A MATTER OF FACT. THE LAW AWAKEN THEM THIS MORNING AND TOLD THEM TELL HAD TO LEAVE THE PROPERTY TODAY, THE HOMEOWNERS DID NOT EVEN LET THEM KNOW THAT THEY DID NOT GO TO THE FORECLOSURE SALE AND THEY THEY LOST. DID NOT EVEN TELL THEM THAY HAD THIRTY DAYS (THE RENTERS THAT IS) THE HOMEOWNERS KNEW ABOUT IT. MY PARENTS ARE 67 AND
65 YEARS OLD. PICTURE THAT. THEY DID TELL THEM THAT THEY STILL HAD 10 DAYS TO GET ALL THEIR THINGS OUT. BUT RIGHT NOW THE LOCKS HAVE BEEN CHANGED AND THEY HAVE TO CALL SOMEONE TO SCHEDULE A TIME TO GET THEIR THINGS.
0 votes Thank Flag Link Thu Feb 5, 2009
Chan:

FIrst, this is a question for a tenant's rights attorney. In a normal sale, the buyer will indicate if they want to receive the property vacant at close of escrow or if they are willing to take it subject to your lease. This will be in the offer to purchase and the owner will either accept the terms of the offer or counter. The same should hold true in an offer on a short sale. So, once your landlord gets that offer, they will be able to let you know if you will need to move.

You should also be aware that short sales take a long time. Some lenders take as much as 60 - 120 days to approve a short sale, even with an offer on the table. During that period of time, the buyer usually finds another property and walks away from the short sale. The seller waits for short sale approval and then tries to roll a new buyer into the transaction. The short sale lender will usually have to go through another approval process, thankfully shorter than the first but still around 30 days. So, you could be living in the property for a long time before you have to start worrying about where to move.

Lastly, if you have a decent credit score and about $5,000 for a down payment, you might be able to buy the house. On an FHA loan, your payments, including FHA mortgage insurance, taxes and property insurance will be right around $1000. If you would like to explore this option further, please fee free to contact me. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Thu Feb 5, 2009
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