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    rtrt91's Avatar
    rtrt91 Posts: 1, Reputation: 1
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    #1

    Jun 11, 2008, 07:57 PM
    Tenant -- short sale of property
    We have been tenants for a year and half and found out that the property is in foreclosure and the landlord has negotiated with the bank for a short sale. We have a 2 year lease. Does our lease stand with the new buyers? Or do we have to vacate? If so, is the California law a 30 or a 60 day notice? Help... thanks!
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #2

    Jun 12, 2008, 05:35 AM
    Welcome to AMHD. Check this site: Foreclosures leave renters in the lurch
    LisaB4657's Avatar
    LisaB4657 Posts: 3,662, Reputation: 534
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    #3

    Jun 12, 2008, 05:49 AM
    If there is a short sale then the buyer has to honor the terms of the lease. If there is a complete foreclosure that proceeds to auction then the lease gets terminated and the new owner can file a lawsuit for eviction.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #4

    Jun 12, 2008, 06:42 AM
    As Lisa pointed out a buyer of a home has to honor the existing lease. But a foreclosure voids the lease.

    Have you thought about trying to buy the house? If the bank has aprroved a short sale, you may get a bargain. Or you could see if you could assume the mortgage. If the landlord stands to lose the house in a foreclosure they may accept a small payment to allow an assignment.
    TinaLee34's Avatar
    TinaLee34 Posts: 5, Reputation: 1
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    #5

    Jun 22, 2008, 07:09 PM
    I had the same situation in California. And after speaking with a attorney I was advised that the landlord is not suppose to collect rent money from a tenant while the home is in foreclosure and in order to short sale a home it has to be in default. So they are collecting rent from the tenant and not applying it towards the mortgage and that is rent skimming a violation of civil code 390 & 391 (I think that was it). I in turn sued the landlord and received all monied back from the original nonpayment of landlord plus moving costs. You might want to check into it.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #6

    Jun 22, 2008, 07:30 PM
    In a short sale, they will have to honor the lease, in a full foreclosure no they do not have to.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #7

    Jun 22, 2008, 07:35 PM
    Quote Originally Posted by TinaLee34
    I was advised that the landlord is not suppose to collect rent money from a tenant while the home is in foreclosure and in order to short sale a home it has to be in default. So they are collecting rent from the tenant and not applying it towards the mortgage and that is rent skimming a violation of civil code 390 & 391 (I think that was it). I in turn sued the landlord and received all monied back from the original nonpayment of landlord plus moving costs. You might want to check into it.
    First, the code sections are 890-894. Second, a landlord can collect rent as long as they are the legal owner of the property. But the code sections say they have to apply the revenue from the property to the property and can't pocket it.
    LisaB4657's Avatar
    LisaB4657 Posts: 3,662, Reputation: 534
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    #8

    Mar 9, 2011, 05:19 PM
    Quote Originally Posted by harribe2006
    This is not accurate
    Could you be a little more specific? What part of my comment did you find to be inaccurate? And if your hit-and-run comment concerns the current foreclosure law then I suggest that you note the date of the question and answer before making your comments. Laws change.
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