Tenants are sometimes caught in the middle if the property is foreclosed upon in California. They might have a legal lease and the right to stay in the dwelling, but the situation is muddled because the landlord is facing foreclosure. People are frequently concerned about what to do in such a circumstance. This is a special situation when it comes to eviction and those who are confronted with it must be aware of their rights.
If the rental unit is foreclosed upon, the lease must be honored by the new owner of the property. However, if it is a month-to-month circumstance or the people who are living there are the owners who are having the property foreclosed upon, the new owner can evict them. In such a case, the new owner can do the following: offer the tenants a new lease or rental agreement; or start the proceeding to have them evicted.
Should the new owner decide the evict the tenants, the tenants must get a minimum of 90 days' notice before the eviction can start. If the tenants were the owners, there is only a three-day notice necessary. If the person is in a rent-controlled dwelling new owners are not allowed to evict tenants. When there is a foreclosure and the occupant is not named in any complaint to move forward with an eviction, the eviction might be challengeable even if there has been a judgment to allow the eviction.
People who are tenants in a home that is being foreclosed upon must have a grasp of their rights in this complicated matter. Speaking to an attorney who is experienced with the perspective of a landlord and a tenant in an eviction can help.
Source: courts.ca.gov, "Eviction: Special Situations -- Rights of Tenants During a Foreclosure," accessed on May 23, 2017