Asked by: Lah Nocelbusiness and finance real estate industry
What happens to tenants when a property is foreclosed in California?
Last Updated: 20th February, 2020
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Just so, how long can tenant stay in foreclosed property?
Subsequently, question is, what happens if the house your renting gets foreclosed on? When the property is foreclosed, in most circumstances, it also ends your lease. If the mortgage was signed before your lease, the foreclosure wipes out your lease. The new owner is still required to give you proper written notice of the lease termination.
In this way, do I still have to pay rent if the house is in foreclosure in California?
The PTFA is now gone, but the California law remains. Under the new law, the rental agreement is no longer automatically terminated by the foreclosure itself, but continued in effect as though the landlord had sole the property. The law also requires the new owner to maintain the premises in habitable condition.
Can you be evicted if your house is foreclosed?
After a foreclosure, the new owner must let you stay until the end of your lease (if you have one) or give you 90 days' written notice to move out – whichever is longer. You can be evicted if you don't move out after that deadline has passed, but there must be a court judgment first.