Foreclosure during lease

[daddydothis]

What is the name of your state (only U.S. law)? California

2 mths ago I renewed my lease and now found out that the house I live in is being foreclosed.

My question is does the bank or new owner have to honor the lease or will they just give me a 30 day notice?

 

[FlyingRon]

Foreclosure wipes out the lease. However, being in California, you've got more protection than a lot of places. The new owner is responsible for your security deposit if the original owner doesn't refund it (which is better than most states). Your best bet is to contact the bank (who most likely will end up owning the property) and see if they will either lease to you or provide you a cash incentive for leaving in an orderly and timely fashion without having to be formally evicted.

 

[daddydothis]

Well whats all this talk I keep hearing about a moratorium that allows tenant to live out the lease if bank owned.

 

[daddydothis]

Does any of this hold water and can any one explain how this will actually work?

December 20, 2008

Los Angeles Mayor
Antonio Villaraigosa
Signs Law to Protect All
LA Tenants from Being Evicted in Foreclosed Rental Properties




The Coalition for Economic Survival, together with the Inner City Law Center, Evictions Defense Network and Legal Aid Foundation, was invited to join Mayor Antonio Villaraigosa and City Council President Eric Garcetti as the Mayor signed a law advanced by the Council President that protects tenants from being evicted in foreclosed rental properties.



Mayor Antonio Villaraigosa signs ordinance extending rent control eviction protections to all rental properties throughout LA into law, as Council President Eric Garcetti who authored the law and steered it through the City Council and tenants advocates look on. (From left to right of the Mayor signing law: Fernando Gaytan, Attorney, Legal Aid Foundation of LA; City Council President Eric Garcetti; Larry Gross, Executive Director, Coalition for Economic Survival; Leah Simon-Weisberg, Co-Executive Director, Eviction Defense Network; Adam Murray, Executive Director, Inner City Law Center)



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New Law Makes Renters
Immune to Foreclosures
December 19, 2009
LOS ANGELES -- Renters whose residences have gone into foreclosure cannot be evicted until the property is sold to a new owner under a city law signed Friday by Mayor Antonio Villaraigosa.

The one-year ordinance, spearheaded by Council President Eric Garcetti, will impact 300,000 apartment buildings and single-family homes.

"This will work to help residents stay in their homes and keep the communities in tact," Villaraigosa said at a City Hall news conference.

During the first nine months of the year, 1,300 rental buildings in the city of Los Angeles went into foreclosure, affecting tenants in 3,700 units.

Earlier this week, Fannie Mae, the government-sponsored lending corporation, announced it would renew leases for renters living in foreclosed properties now in the possession of the company.

"Renters are truly innocent victims in the foreclosure crisis," Garcetti said. "We are seeing innocent renters, who are playing by the rules, who are paying their rent, being kicked out of their apartments."