Renter in California. Owner behind in mortgage, house up for auction.?
by Mortgage Rates on Monday, November 22nd, 2010 | 4 Comments
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Are you familiar with the expression “you can’t get blood out of a turnip?” That means if they don’t have it, you can’t get it. .
Do you think you could sue the owners for losing their property to foreclosure?
Just because the house is being foreclosed doesn’t necessarily mean you would have to move; maybe the new owners would like to continue to have you as a tenant.
You would not have a cause of action against either of them. If the auction goes thru whoever buys it (or the bank if no one buys it) becomes your landlord and must allow you to stay until the end of your lease.
well your first problem is once the house is actioned your lease which is a junior encumbrance on the land is wipe out by the action of the senior note, once the senior note is actioned all encumbrances which are Junior are wipe out, so be ready to move soon, say thirty sixty days after the place is actioned
now can you go after the landlord for relocation fees? maybe but if the house is taken back doubt they would have much assets to attach
the management company might be a long shot
Unless a clause is written into your lease agreement that addresses the sale of the property, you are entitled to live there for the term of the lease. The buyer has the responsibility of upholding all existing lease agreements.
Your lease agreement doesn’t just require you to pay rent for the lease period. It also requires your landlord, or new landlord in this case, to rent the apartment to you for the lease period, and neither party can break this agreement without consent or a clause written into the lease.
However, since this is house rather than an apartment building, the new owner may want to convert it from a rental to his own residence. In California, the Ellis Act can allow new owners to evict current residents with 120 days’ notice in these circumstances, but it also requires new owners to pay relocation expenses for those in need. Considering that only leaves a few weeks remaining on the lease, it’s unlikely the new owner would bother. So expect to be moving next December at the end of your lease.