NOD filed against owner on June 12...

This is a discussion on NOD filed against owner on June 12... within the Landlord vs Tenant Issues forum, part of the REAL ESTATE & PROPERTY LAW category; We moved in on Nov. 1 into this single-family home in California and signed a 1-year lease with the owner ...

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Old Jun 28th, 2009, 04:48 AM   #1
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Confused NOD filed against owner on June 12...

We moved in on Nov. 1 into this single-family home in California and signed a 1-year lease with the owner through a property management company. A few months later, we knew the owner stopped paying the mortgage as notices started appearing in the mail. In April we were told the owners couldn't keep the property and were putting it up for short sale. For a month, we showed the home to real estate agents/prospective buyers. Go fed up and certainly wasn't enjoying 'quiet enjoyment' of the property so we asked for either a drastic reduction in rent or no more showing the house. They said ok, you don't have to show the house and we haven't heard anything about that since, though we do know that while we showed the house, that one of those prospective buyers put an offer on it. A rep from the bank even came by last week to take pictures (including the inside of the house) to use to help them judge if the offer was a fair one. That was the last we heard until we found out today that the country recorder shows that a Notice of Default was filed against the owner on June 12.

In the meantime, we have had a rough patch financially and still haven't been able to pay rent for June (all other rent up to that point had been paid). We were served the 3-day pay or quit about midway though the month (I can't remember the exact date) but we explained our situation to the property mgmt co. that our situation is temporary and we should be able to get caught up soon. But now it's getting close to July 1st and the real estate agent for the owner (who apparently is acting as their legal counsel) has informed the property management company that they have plans to begins the eviction process if we don't pay up.

We believe that the owners leased the home to us in bad faith knowing that they would eventually foreclose but figured they'd try to get some income out of it before that happened. They've done everything right in that they have responded to necessary repair calls and had them fixed (through the property management company), have continued the landscape service, and paid the water/sewer bills. But that is very little money compared to the profit they make collecting rent (while not paying the mortgage). I do know that they are not legally bound to use the rent $ toward the mortgage. However, is there an anticipatory breech of contract by them not paying the mortgage and letting it go into default? Their real estate agent DID tell me that they don't have any hope of doing a loan modification because of their bad credit and they HAVE put it on the market so it doesn't look like they will try to make arrears on the property.

If they try to sue us for eviction, do we have any recourse for a countersuit? Or anything we can say to persuade them not to start the eviction process? Obviously, since we're having a hard time financially right now, we can't very well afford to hire an attorney so hopefully you can help.

Thanks in advance.
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Old Jul 1st, 2009, 09:12 PM   #2
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Default Re: NOD filed against owner on June 12...

Countersue? If they file eviction, you have no recourse. You stopped paying. Its as simple as that in CA. You forced them to stop showing the house to enable it to sell. Not only can they evict you, but they could possibly sue you for infringing on their rights to sell. You don't have the option to not show the house. It isn't your house. It is theirs. They have every legal right to show and sell the house as long as they don't abuse the right to enter with excessive showings. (Your quiet enjoyment can't infringe upon the owner's right to sell.) And CA state law (CA Civil Code 1954) allows a LL to enter the rented property to show it to prospective buyers with only a 24 hour notice. You refused showings contrary to state law. Your actions probably caused the house to go into foreclosure when it might have been sold. It was unnecessary, especially since a lease survives a short sale and you would have been able to continue to live there under the same agreement. They have continued to keep up their end of your agreement with maintenance. You have not. Their mortgage payments have no bearing on your eviction. Until they lose the house to the bank, they are due the rent. Rent pays for the period you live in the house. If you are still there, you must pay rent.

Move out before the pay or quit ends or face having the eviction suit on your court record. Once filed, it becomes part of the permanent court records. It is a public record that any LL or future employer can see. It will cause you to be denied future housing since LLs won't take tenants with eviction filed against them. Sorry about your hard times, but it looks like you caused your hard times to be someone else's.
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Old Jul 2nd, 2009, 01:11 PM   #3
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Thumbs Down Re: NOD filed against owner on June 12...

Wow, you are so wrong. Go look up "quiet enjoyment". They did NOT have to show the property AT ALL.

Your entire answer is discounted because you're obviously biased.

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Old Jul 3rd, 2009, 08:52 AM   #4
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Default Re: NOD filed against owner on June 12...

To the last poster, you obviously don't know the law. Let me quote it for you.
California Civil Code Section 1954

(a) A landlord may enter the dwelling unit only in the following cases:
(1) In case of emergency.
(2) To make necessary or agreed repairs, decorations, alterations or improvements, supply necessary or agreed services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors or to make an inspection pursuant to subdivision (f) of Section 1950.5.
(3) When the tenant has abandoned or surrendered the premises.
(4) Pursuant to court order.
(b) Except in cases of emergency or when the tenant has abandoned or surrendered the premises, entry may not be made during other than normal business hours unless the tenant consents to an entry during other than normal business hours at the time of entry.
(c) The landlord may not abuse the right of access or use it to
harass the tenant.
(d) (1) Except as provided in subdivision (e), or as provided in paragraph (2) or (3), the landlord shall give the tenant reasonable notice in writing of his or her intent to enter and enter only during normal business hours. The notice shall include the date,
approximate time, and purpose of the entry. The notice may be personally delivered to the tenant, left with someone of a suitable age and discretion at the premises, or, left on, near, or under the usual entry door of the premises in a manner in which a reasonable
person would discover the notice. Twenty-four hours shall be presumed to be reasonable notice in absence of evidence to the contrary. The notice may be mailed to the tenant. Mailing of the notice at least six days prior to an intended entry is presumed reasonable notice in the absence of evidence to the contrary.
(2) If the purpose of the entry is to exhibit the dwelling unit to prospective or actual purchasers, the notice may be given orally, in person or by telephone, if the landlord or his or her agent has notified the tenant in writing within 120 days of the oral notice that the property is for sale and that the landlord or agent may contact the tenant orally for the purpose described above. Twenty-four hours is presumed reasonable notice in the absence of evidence to the contrary. The notice shall include the date, approximate time, and purpose of the entry. At the time of entry, the landlord or agent shall leave written evidence of the entry inside the unit.
(3) The tenant and the landlord may agree orally to an entry to make agreed repairs or supply agreed services. The agreement shall include the date and approximate time of the entry, which shall be within one week of the agreement. In this case, the landlord is not
required to provide the tenant a written notice.
(e) No notice of entry is required under this section:
(1) To respond to an emergency.
(2) If the tenant is present and consents to the entry at the time of entry.
(3) After the tenant has abandoned or surrendered the unit.

This tenant has violated the law as stated above. The tenant was notified that the property was up for sale. LL requested entry. Tenant denied such. The poster states that they only permitted showings for a month. A judge would likely not find that was abuse of entry. This was not entry for trivial reasons. It was for showings by a real estate agent. Tenant cannot deny access. The LL could have gotten an injunction to force entry and showings if he had wanted to press the issue. The home wasn't leased in bad faith. The tenant caused the foreclosure by denying access to buyers. No one will buy a house they can't look at.

Further, tenant failed to pay the rent on time. They have not paid rent for June and now July. Non-payment of rent is an easy win for eviction for a LL, even in CA. After the 10 day Pay or Quit period is up, LL can refuse rent and evict. The tenant hasn't a leg to stand on in this case.
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