In the state of California is it legal to collect rent on your rental property and not pay the mortgage? The landlord owns 2 houses and both houses are in foreclosure. I'am rent one of the houses and need to know what my legal rights are.

There is no criminal law against doing this, He can collect his rent, in fact if you don't pay, he can evict you. It is hard to say how long a foreclosure will last, 4 to 8 months depending on the lender.

It is not ethicial or perhaps moral, but not illegal

Just found out that the landlord cannot collect the rent if he has defaulted on the loan and has not been paying at least the mortgage amount he had been collecting from the renters. It is a felony in the state of California.

Please post statute... I'm very interested where you heard this nonsense... especially the part about it being a felony.

Hello t:

You don't have any rights beyond those listed in your rental agreement or afforded you by state law. Once the house is foreclosed upon, that agreement ends, and you'll be a trespasser. You can call the bank and ask them when they plan to actually foreclose. It might help you plan.

Also, it would give you notice so that you don't pay your landlord rent one day past the foreclosure. You will owe him rent up until that day.

I agree with you, he should have paid his mortgage. But, it's not a crime that he didn't. It's a shame.

excon