Forclosure: What are tennents rights ?

[daunte63]

I live in california and I just started renting a condo only to find out that it is in forclosure. The landlord is negotiating a short sale, but got notice that property has a sale date of march 5 2009. Some one said that there is a law being passed to protect renters from immediate eviction. doesn't the tennent have any rights? What is the timeline? The landlord said she would be filing bankruptcy to hold off the forclosure. What does that mean?

Many lenders will work with you and renew the lease but if the mortgage was there before your lease then in many situations you don't have great rights.

But you normally still need to be evicted if you refuse to leave so they will likely want to negotiate with you.

Also check with your nearest state dept of housing office for any local protections that may exist.

[sunlover]

Legally depending on how long you have lived there you are given anywhere from 30 to 60 days to leave. Also to your benefit many banks or new owners offer a cash for keys settlement

[daunte63]

So will I Be given written notice or will that go to the landlord? Should I call the mortgage company myself?

[sunlover]

You should start looking for a new place and save money until you get this notice.

Unfortunately, you don't have too many rights as a tenant. We are currently going through the same thing. In August, we leased a home from a property management group. In December, we were served with foreclosure papers stating the mortgage hadn't been paid since May. In other words, the homeowner allowed us to rent the home when it was already in pre-foreclosure.

Send your landlord a letter via certified, return receipt mail and inform them you are leaving due to impending foreclosure. Unfortunately, you will have to move unless the homeowner is able to obtain a loan modification. Sometimes lenders will provide the homeowner with a loan mod if there are tenants in place. The bank may agree to renew your lease and have you pay them directly.

Good luck!

Read the information at tenantforeclosure.blogspot.com/

[Wilson9975]

Renters whose states follow the “first in time, first in right” rule, where a lease can be wiped out by a foreclosure if the mortgage was recorded before the lease, will not be able to convince a court to change that rule. But tenants who learn that their new landlord is a bank can at least lessen the financial consequences by suing the former owner.

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