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Wanderer
2011 Apr 6, 8:35am
What about on the buyers side of this issue? What problems might I face as a purchaser of a foreclosure or short sale with tenants?
Depends. If you're purchasing as a landlord, you'd probably want to sign a new lease or rental agreement with the tenants. If you're purchasing a primary residence from the bank, and the bank gave them the 90-days notice to vacate, you'd have to wait out that notice. If the tenants have a lease and you want to move in, you'd have to ask the bank to serve them with the 90-days' notice and then wait 90 days to move in. Or you could make a "cash for keys" offer and see if they'd be willing to move sooner.
American in Japan
2011 Apr 10, 5:23pm
I just heard an interesting story (secondhand) of a tenant who stopped paying rent because the "landlord" stopped paying the mortgage on the property! This is in California.
bubblesitter
2011 Apr 10, 11:47pm
I just heard an interesting story (secondhand) of a tenant who stopped paying rent because the “landlord†stopped paying the mortgage on the property! This is in California.
Nowadays tenants can be evicted faster then bank evicts the plenty of owners.
Sometimes tenants can get away with not paying the rent. BUT the landlord can serve a 3-days' notice to pay rent or quit and then the tenant must pay the rent. If the tenant doesn't do so, the landlord can file an unlawful detainer (court eviction) against the tenant. Unfortunately the law does not protect a tenant against the financial incompetence of the landlord.
Wanderer
2011 Apr 11, 4:46am
Thank you for the info! The tenants have only a month to month lease so we should be able to avoid the 90 day notice, right?
Jessica--
No. All tenants in foreclosed properties are eligible for 90-days' notices. If a tenant had a lease that extended beyond the 90 days, you'd be able to limit them to 90 days. The other option is to buy the tenants out, but the tenants don't have to take "cash for keys." It's their option.
Patrick published what became my blog on tenants in foreclosed properties in California at the end of 2007. Several months ago, I'm embarrassed to admit, he asked me to start a thread on the issue. I have now done it! You may discuss the issue, leave questions, comments, suggestions and criticism here. I promise to check in every few days to see if anyone who needs help has posted here. Please remember that I'm not a lawyer and can't give legal advice but, unfortunately, most tenants in foreclosed properties can't be helped much by legal representation.
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