Tenants’ Rights in Foreclosed Properties
Posted on May 30th, 2011
Renters and tenants are now being affected by foreclosures almost as often as homeowners. There are a lot of renters in foreclosed properties without knowing the property is being foreclosed on. Below are some rights and tips for Tenants.
The new property owner must maintain your utility service, even if it is the bank that foreclosed. If the new owner does not do so, contact your legal services office.
It is illegal in California to change a tenant’s locks without court order. To get a court order, the property owner must take the renter through the formal eviction process. For a formal eviction, the property owner must serve the renter with a written notice, and then must file a Summons and Complaint with the court and serve a copy on the renter. The renter then has 5 days to respond in writing and file the response in writing and file the response with the court. You are entitled to a trial.
Whoever knocks on your door or sends you a notice asking for rent might not be the new owner. Make sure they provide you with proof. Ask for a copy of a recorded Trustee’s Deed. You should also go yourself to the county recorder’s office to double-check on who the new order is.
The new property owner is responsible for the conditions of the property. You are entitled to request repairs from the new owner, even if it is the bank that foreclosed.
When lenders foreclose on a property, they may not be able to sell the property to someone else. If not, then they or their representative become the owners of the property, and they often hire a management company to deal with the tenants. Right after foreclosure, real estate management companies may knock on your door offering “cash for keys”. They may sound threatening and tell you that you have to leave the property in 5-10 days. They may offer to pay you a small amount of cash if you leave.
*Do not be intimated. You have the right to receive proper notice-which will be a 90 day notice if the foreclosure happened after May 20, 2009, and 60 day notice if the foreclosure happened earlier. In some cases, the new owner might not be entitled to evict you at all.
*Verify who you are talking to. Because the foreclosure is a public record, scam artist may knock on your door and try to get you to let them in, or may try to frighten you out of your home. You can verify who the new property owner is at the county recorder’s office.
*If you decide to more out, make sure you ask for as much money as you realistically need in order to move (two months rent, expenses, etc.) Ask for at least half the money up front and/or for the entire payment before you hand over the keys, and request and agreement that is in writing and signed, so that you have proof of the agreement.
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Tags: Foreclosed Properties, Properties
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