Foreclosure in Joshua Tree>Question Details

Erica, Other/Just Looking in Joshua Tree, CA

the house i am renting is in pre forclosure will the bank rent directly to us

Asked by Erica, Joshua Tree, CA Sat Jul 26, 2008

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Stay where you are and pay your rent. Banks are negligent and often commence a foreclosure for past due taxes or insurance premiums where the escrow accounts was under estimated. Your landlord may just want to get a new loan or complete a longer than expected short sale to someone looking to rehab the building. Don’t concern you with it as the owner can hit the lottery at the eleventh hour and redeem.

Anyway, you may have a claim if the lender was negligent (not as an owner with right to tile, but a victim of a lenders predatory loan (excessive loan causing the borrower / landlord to crash) really.... Will you get the property at a discount...not likely? But the CASH FOR KEYS COULD GET INTERESTING.
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0 votes Thank Flag Link Sat Jul 26, 2008

Here is what I know from experience:
1. Banks do not rent properties once they have been foreclosed.
2. Some banks do offer "cash for keys" which could help you move once they do complete the foreclosure.
3. Foreclosure takes a minimum of 111 days in California from the time the notice of default is filed until the auction date.
4. You are protected under tenant laws in California (even though banks and the agents they hire to sell their REO's don't tell you this). They would have to give you notice to move. I believe current tenant law says 30 days if you have been there less than one year and 60 days if over one year.
5. There was a new proposed law, which I believe has been signed into law by the Governor, which requires lenders to give all tenants 60 days notice to vacate after a foreclosure.

I suggest that you check with an attorney to see what your rights are (I am not an attorney and none of the above should be viewed as legal advice). Hopefully, this information will give you some peace of mind and help you with planning your move. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Sat Jul 26, 2008
Hi Erica:

Banks are not in the business to either own homes nor are they in the business of rental or property management.

They will let you stay until they sell the house. You might be able to negotiate to stay a bit longer or they will give you incentive to move out so the new owners can move in. Of course, if the new owners are getting this as investment property, they might welcome you to stay.

However, with pre-foreclosures, it might take a while for the actual sale to occur and foreclosure postponed a few times when that happens (especially if there is a short sale contract in place). So, you will have a date of when you have to move out which might be extended, but if I was you, I will plan to move.

0 votes Thank Flag Link Sat Jul 26, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
Sorry to hear what has happened. Are your confirmed about the pre foreclosure? Have you received the documents? Is it your landlord who is kind enough to tell you? SUGGESTION: if all is true you will need locate a new residence HOWEVER have the current landlord release you from the rental agreement. If you dont our office has received emails, calls stating the landlord is suing them for rent. I am concerned you dont vacate the property without "dotting all the i's and cross the t's". Many families leasing homes are under the same situation.
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0 votes Thank Flag Link Sat Jul 26, 2008
Sorry to inform you that bank don't have there property rented... You might get a notice from them to vacate the property or they might even have a sheriff escort you to vacate the place. It is time to find a place to move in to. You could probably save up the money for your deposit to the new place you might be moving in...Check your tenants rights in your area
0 votes Thank Flag Link Sat Jul 26, 2008
The bank cannot rent directly to you until they actually own the home. Until the foreclosure process is completed, only the current owner can make that decision. However, be cautious because the bank is not likely to want to continue renting to you. They are much more likely to want to sell the home. However, if the current owner has a Realtor who is working for a short sale on the property before the bank initiates foreclosure proceedings, it is possible that that Realtor can try to work out an agreement that allows you to continue renting until the home is sold. Are you interested in buying the home? If so, make an offer to purchase through your Realtor now. You might be able to purchase the home for less than the current owner paid for the property and maybe less than the current mortgage. Only the seller's Realtor (if the owner has given permission) and the seller are authorized to speak with the bank representatives, however, so go through these contacts with your offer for rental and/or purchase. Good luck.
0 votes Thank Flag Link Sat Jul 26, 2008
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