A public information resource sponsored by the Law Office of David W. Martin - (800) 229-0546

RENTERS IN PROPERTIES THAT ARE TRANSFERRED TO A NEW LANDLORD AFTER FORECLOSURE

In response to an dramatic increase in foreclosures that resulted in tenants losing their rights because their landlords did not pay the mortgage on the property, the California legislature enacted laws that require the purchaser of the foreclosed property to honor the prior owner’s agreement with the tenant unless the purchaser intends to occupy the property.

In addition, tenants who rent properties that are sold in foreclosure must be given special additional notices and extended notice periods prior to forcing the tenant to relocate.

The law protects the tenant who has paid rent regularly and otherwise done nothing that would warrant an eviction from being forced-out of his or her home because the former owner did not pay the lender.