05/04/2019
RENTER’s RIGHTS
in foreclosed homes
Yes, Renters Have Rights
While SB1191 mandates that landlords provide notice that a property is in foreclosure proceedings to prospective tenants, it does not, however, force a landlord to inform current tenants that a property is subject to foreclosure.
HOW DO I KNOW IF THE PROPERTY IS PENDING FORECLOSURE?
Tenants can record, in their county recorder’s office, a form called a Request for Notice, asking that they be notified of any foreclosure proceedings. This way the tenant will receive a copy of the Notice of Default and Notice of Sale and know the status of the foreclosure. You can click the link here to download a free copy Request For Copy Of Notice Of Default. You must then file this with your local County Recorder office and pay a nominal filing fee. Link here to find your county office: https://www.cdph.ca.gov/Programs/CHSI/pages/county-registrars-and-recorders.aspx
California does give existing tenants some advance warning, however, which must come from the foreclosing bank or lender. Tenants must be notified at least 20 days before a property is sold at foreclosure. Banks or lenders must post a “Notice of Trustee’s Sale” on the rental property. (California Civil Code Section 2924.8.)
If the property you rented was foreclosed, the new owner may offer the existing tenants a new lease or rental agreement or begin eviction proceedings. If the new owner moves forward with evicting existing renters, the new owner must give the tenants at least 90 days’ notice before starting eviction proceedings. Additionally, if you live in a city with eviction or rent control laws, the new owner may be prohibited from using foreclosure as a reason for evicting tenants. Please check with your local housing office to see if your city has codified this law.
BEFORE YOU RENT
If a landlord has received a Notice of Default that has not been rescinded (cancelled), that landlord must provide notification of the foreclosure to prospective tenants, but only if the property that is being offered for rent is a single-family dwelling, or a multi-family dwelling not exceeding four units.
Contents of the Written Disclosure Notice
The written disclosure notice provided to the prospective tenant must include information that:
• the foreclosure process has begun on the property, and the property may be sold at foreclosure
• if you rent the property, and a foreclosure sale occurs, the sale may affect your right to continue to live in the property in the future
• your tenancy may continue after the foreclosure sale and that the new owner must honor the lease unless the new owner will occupy the property as a primary residence, or in other limited circumstances, and
• in some cases and in some cities with a “just cause for eviction” law, you may not have to move at all, and that in order for the new owner to evict you, the new owner must provide you with at least 90 days’ written eviction notice in most cases.
You must then record this notarized form with your local county Recorder’s office and pay a filing fee. See above for a link to California counties to locate the local Recorder’s office.
Do you have more questions? Call the Tenant Foreclosure Hotline at 1-888-495-8020 for additional assistance.
cdph.ca.gov
nolo.com
