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deluna17 · Nov 3, 2008, 09:39 AM

We are renting a house in California on a month to month lease. We don't deal with the owners, but a property manager. We found out in July that a notice of default was filed. We have asked the property manager to find out what is going on from the owners. They claim to have talked to them and they deny that the house is in foreclosure. Two days ago we received a notice that the house will be auctioned off on 11/21. How much time do we have to get out of the house and do we have any legal grounds? The property manager is stating in order to get our deposit back, we have to have the house completely cleaned, including walls, window sills, floors, carpet, etc. per our lease agreement with them. Why are we held to our end of the lease, but the owner isn't? We have only lived there for 10 months. The owner hasn't paid the mortgage the whole time we rented the house. Isn't that fraud on their part?

rockinmommy · Nov 3, 2008, 12:31 PM

This is a tricky, unfortunate situation.

You're lucky that you're in CA. It's the only state (so far) that offers the tenant any sort of protection in your situation. I'm sorry that I don't know exactly what those rights are. Hopefully someone will be along soon who knows. Also, I'm sure if you just start Googling you'll be able to find something.

As to whether they've violated the lease by not paying the mortgage... it's doubtful. It would have to specifically state that in the lease and/or your state's LL / tenant laws. (There's a sticky at the top of this forum with a link for each state.) It's definitely questionable behavior, but probably not a literal lease violation. Maybe in CA...

Have you paid November rent? I'd notify the property manager in writing that you've placed the money in a escrow account until this is all sorted out.

As far as how long you'll have to vacate... it totally varies. Some mortgage companies don't ever make the tenants leave - they just let the future owner deal with you. Some will give you a decent amount of time (30 days). Some will evict you... like I said, you need to figure out the (fairly new) CA law on this. (I'll bet you anything the property manager knows... it sounds like they're just trying to milk this as long as possible because you paying rent is the only way they get paid.)

ScottGem · Nov 3, 2008, 12:36 PM

I would say you will fall under the CA law previously mentioned. Thjis law requires the landlord make mortgage payments during the first year of your lease. I would check with the property manager or your local housing court for the exact provisions of that law.

Hoiwever, that law doesn't prevent you from being evicted. It can compensate you for having to move. There's not telling exactly how much time you will have, but generally, courts are being lenient to people in your situation.