LANDLORD-TENANT LAW
Foreclosures
A property goes into Foreclosure after the mortgage is unpaid for a period of time. The whole process could take months. Most foreclosures are nonjudicial which means that they are ultimately done by a private party (auction) rather than a court hearing. The Foreclosure process and the timelines are somewhat complex but there is usually some time between events allowing the taking of appropriate action.
CALIFORNIA FORECLOSURE TIMELINE
After the property (residential or commercial) is lost through a Foreclosure (i.e. Trustee Sale), the next step will most likely be an eviction.
EVICTION
The new owner could be the lender (bank) or a new homeowner or an investor. In any event, if they did not offer to sell or otherwise transfer the property to you in some sort of sale or transaction, the will most likely want to evict you. If you are a tenant living in a home or occupying a commercial space foreclosed out from under you, you are entitled to a 30 day notice to move. If you are the former owner, they will serve you a 3 day notice to move out. The notice must be served correctly and it must contain language required by law. In both cases, when the notice expires, and if you have not moved out, they will commence an Unlawful Detainer (eviction) action. If you are a tenant with a lease, your rights to remain at the property under that lease will probably be extinguished by the foreclosure.
You must act promptly to protect your rights, especially in these situations where your rights are limited. You may have only 5 days to respond! If you find Unlawful Detainer papers at the property, even if you were not "served", seek assistance right away to get advice and respond with your own papers. You may wish to respond and protect your rights even if you were not named in those papers. If you do not respond quickly and correctly, you will be evicted by the Sheriff very soon. With specialized legal assistance, you can go through this eviction proceeding without having a judgment on your record. You may also be able to gain some more time in the home without paying any rent. Seek legal advice to be sure this is handled correctly.
Sometimes, the new owner will offer you money to move out and avoid an eviction. This is commonly referred to as "cash for keys." This may be a positive move since it gets you some moving money and avoids an eviction. Many people say that they cannot take advantage of these offers because the demanded move out time for the cash is just too soon. If you get such an offer, have it reviewed by an attorney or trusted real estate professional to be sure you get what was promised and that your rights and credit record are protected.
if you are a former owner and feel you were cheated out of your home, you may have the right to get your home back or at least make a claim for damages including your lost equity. Again, seek promptly experienced legal assistance before taking any action.
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Owners
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California law for San Diego is applied in these pages. Such laws may or may not be applicable in other jurisdictions. The information provided herein is of a general nature and is not intended to be taken as specific legal advice. For legal advice in a particular situation, promptly consult with an appropriate attorney.