• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Landlord in default and rented a home he did not actually own - tenant recourse?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

jscott1977

Junior Member
What is the name of your state?
California

We have been living in a home for 9 months now on a one-year lease. During the time we have been here, we have been receiving mail for a certain person, people have driven by to take pictures, and someone even came to the door looking for the person whom we'd been receiving mail for. I had been in contact with the property management company who this whole time said they didn't know who this was and did not know why people were coming by and taking pictures of the home and that we shouldn't worry about it and to just continue to send the mail back to sender. Friday, August 10, we come home to find a notice on our front door addressed to the person in question stating that because he has been in default since SEPTEMBER 2006, the bank now owned the home and it is going to auction on August 30. SO...the landlord - supposed owner, intentionally rented out a home that he was foreclosing on, the property manangement company rented out a home they knew was default, and now we are having to look for a new place to live ASAP. What kind of legal recourse do I have? I feel that the property management company has been lying to us all along!! I called them up the minute I saw the notice and asked for an explanation and they played dumb like they had no idea. The house was in default at least 3 months prior to us signing a lease agreement! I am not too familiar with real estate and/or property management, however, I do know that any professional, up-standing property management company would run a back ground check on the owner before agreeing to manage his property. They ruin them on the possible tenant! It sounds to me like it was all about getting a cut. What can I do? I do not want to be considered a squatter and stay here until a Sherrif - probably a friend of ours - hands us a notice to move out like we are the ones who did something wrong. What kind of accountability must the property management company be held to? And what about the so-called owner who defaulted on his deed of trust and rented a home he never actually owned? Please advise. I'd appreciate any/all feedback.
 
Last edited:


LindaP777

Senior Member
the property manangement company rented out a home they knew was default,
How in the world do you know the property management knew the house was going to be foreclosed on?

I do know that any professional, up-standing property management company would run a back ground check on the owner before agreeing to manage his property.
And even if they did run a background check, it would show past behavior, not future!

What can I do? I do not want to be considered a squatter and stay here until a Sherrif - probably a friend of ours - hands us a notice to move out like we are the ones who did something wrong.
Yes, you can stay there until after the sale (I've seen people stay as long as a few months after the sale). The new owner will contact you and tell you when you need to leave. If it is the bank who holds the mortgage, they might even offer you cash for keys to move. If it is and investor who buys it, they usually move quickly and will want you out immediately. Once they file for "writ of possession" or what ever they call it in CA, you will have to move or risk being set out.

What kind of accountability must the property management company be held to?
I, personally don't see where they would. Stand by for differing opinions.

And what about the so-called owner who defaulted on his deed of trust and rented a home he never actually owned?
How did you come to that conclussion??? I thought you said he was being foreclosed on?
 

HomeGuru

Senior Member
What is the name of your state?
California

We have been living in a home for 9 months now on a one-year lease. During the time we have been here, we have been receiving mail for a certain person, people have driven by to take pictures, and someone even came to the door looking for the person whom we'd been receiving mail for. I had been in contact with the property management company who this whole time said they didn't know who this was and did not know why people were coming by and taking pictures of the home and that we shouldn't worry about it and to just continue to send the mail back to sender. Friday, August 10, we come home to find a notice on our front door addressed to the person in question stating that because he has been in default since SEPTEMBER 2006, the bank now owned the home and it is going to auction on August 30. SO...the landlord - supposed owner, intentionally rented out a home that he was foreclosing on, the property manangement company rented out a home they knew was default, and now we are having to look for a new place to live ASAP. What kind of legal recourse do I have? I feel that the property management company has been lying to us all along!! I called them up the minute I saw the notice and asked for an explanation and they played dumb like they had no idea. The house was in default at least 3 months prior to us signing a lease agreement! I am not too familiar with real estate and/or property management, however, I do know that any professional, up-standing property management company would run a back ground check on the owner before agreeing to manage his property. They ruin them on the possible tenant! It sounds to me like it was all about getting a cut. What can I do? I do not want to be considered a squatter and stay here until a Sherrif - probably a friend of ours - hands us a notice to move out like we are the ones who did something wrong. What kind of accountability must the property management company be held to? And what about the so-called owner who defaulted on his deed of trust and rented a home he never actually owned? Please advise. I'd appreciate any/all feedback.

**A: what type of advice are you looking for? You have no case so start packing.
 

jscott1977

Junior Member
How in the world do you know the property management knew the house was going to be foreclosed on?


And even if they did run a background check, it would show past behavior, not future!


Yes, you can stay there until after the sale (I've seen people stay as long as a few months after the sale). The new owner will contact you and tell you when you need to leave. If it is the bank who holds the mortgage, they might even offer you cash for keys to move. If it is and investor who buys it, they usually move quickly and will want you out immediately. Once they file for "writ of possession" or what ever they call it in CA, you will have to move or risk being set out.


I, personally don't see where they would. Stand by for differing opinions.


How did you come to that conclussion??? I thought you said he was being foreclosed on?
The notice of auction stated that the owner had been in default since 09/22/2006 - 3 months prior to us signing a lease...
 

CA LL

Senior Member
Never owned??? Being in default means the mortgage was not paid up but he still at that point OWNED THE HOME.

Foreclosure actions VOID any agreements immediately. You need to find a new place ASAP.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top