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  1. #1

    Default Tenant of Foreclosing Property

    My question involves an eviction in the state of: CA

    This forum changed a bit and not sure which topic to select.

    Quick time line

    According to county assessor records:

    Default of property: 9/8/2010
    Notice of Trustee Sale: 12/9/2010

    According to other documents:

    Short Sale: 1/12/2011
    Termination of Short Sale: 5/5/2011

    Notice of Trustee Sale: 9/22/2011 (taped to door. Owner sent me a .pdf copy via email)
    Date of Auction: 10/12/2011

    The owner resides at the property (a condo) and I've rented a room since 2001. I've been an employee of his since 1999 and it was understood earned income was to cover rent, bills and other living expenses.

    How is this going to affect me? Can the Protecting Tenants at Foreclosure Act protect me? If so, how? If not, what's the most time I can get before having to vacate? How can I secure this time? Who do I go to now?

    Problem: It is foreseeable the owner may try to deny me as a tenant. Should I contact the lender (bank the default mortgage is with)?

    Additional situation: This auction date is a "golden moment" per say in that this owner will not be owner of this condo anymore and he can be removed without legal means of returning. Criminal charges against the owner are likely for things not related to the foreclosure, but some involve acts that may relate to tenancy agreements. Would this at all affect the nature of the foreclosing procedures?

  2. #2
    Join Date
    Sep 2005
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    Default Re: Tenant of Foreclosing Property

    What do you mean, "earned income was to cover rent, bills and other living expenses"? Do you mean that you've been working "under the table" in exchange for room and board, no records of actual work performed, no records of pay, no rent payments, no lease, tax fraud by both of you on the earnings, etc.? If that's the case, it could be difficult to establish yourself as a bona fide tenant, particularly if your friend responds, "I was just letting him use a room" (which he may be inclined to do instead of confessing to tax fraud, employment law violations, etc.) You imply that you expect him to be charged in relation to some of that - or perhaps there's even more illegality going on.

    When, to establish the bona fide nature of your tenancy, they ask you what the rate of rent was, what will you say? What proof do you have that you were paying rent, let alone to establish a rate?

  3. #3

    Default Re: Tenant of Foreclosing Property

    My employment was on the books until 2007 and some work done after can be shown through public publication. I just had not received net pay. Up until a certain time he did not ask for any money and would use his card for bills as I received them, other expenses he'd give me cash and there was always plenty of food.

    Though there is reason to believe he'll try to deny my residency and/or employment it'd be contrary to what can be shown otherwise. He's already expressed this denial and at least to me.

    I want to extend my time under this roof as long as possible. I am awaiting reply from a lawyer referral to discuss this, so that is in the works. In the mean time I'm looking for insight on what to expect and the possibilities that could help extend my time here and perhaps even what he might be able to do to hurt me in this effort. He can be spiteful. It'd be foolish for me not to expect it.

  4. #4

    Default Re: Tenant of Foreclosing Property

    I have not gotten a response from a referral yet. Can someone please shed some 'light' here? Thanks.

  5. #5

    Default Re: Tenant of Foreclosing Property

    I got one consultation so far and this is what was stated...

    "I cannot predict what the future owner will do. And, you do not present an opportunity for a clear legal analysis because that future owner will dictate.

    If the new owner doesn’t even know you exist, which I believe is the case, the present owner, not you, but your landlord, to whom you are like in a subtenant relationship on or after October 13, will receive a three-day notice to quit, and after the fourth day, a summons and complaint for unlawful detainer. You will then, at that time, probably receive an occupant’s claim of possession, with the lawsuit. You will have to defend that lawsuit if you plan on staying any measureable length of time. That lawsuit has a five-day response deadline; an Answer filed in court will get you another three weeks to a trial.

    If the new owner knows you exist, as a (partial) tenant, maybe you will get a sixty-day notice."

    According to this I know the three day notice to quit is for him, not me.

    Does anyone know what to expect with an occupant's claim of possession? What would I need to show in court to best defend that suit?

    I did read somewhere the new owner should have the property recorded at the county assessor's office within a few days of the sale. I'm guessing I would retrieve who the new owner is through the county assessor's and then make contact? Is it better to try and contact the trustee prior to the sale? Should I just wait it out until I get notice...(whether the occupant's claim of possession or a 60 day)?

  6. #6
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Tenant of Foreclosing Property

    even without paying rent you are a tenant and must be treated as such. Since you do not have a definite term lease that would have to be respected, you can be evicted as any other month to month tenant would be evicted. Without looking (in other words, an educated guess) I suspect you will have to be given 30 days notice of termination of tenancy and then, if you refuse to leave, the owner would have to proceed to court to have you removed through an eviction action.

    btw: the employee thing: makes removing you even quicker if the room can be considered part of your pay. Once employment terminates, so does your right to stay.

    for the protecting tenants at foreclosure act, one requirement is this:

    Bona Fide Lease or Tenancy
    A lease or tenancy is bona fide if the tenant is not
    the mortgagor or the parent, spouse, or childof the
    mortgagor; the lease or tenancy is the result of an
    arms-length transaction; andthe lease or tenancy
    requires rent that is not substantially lower than fair
    market rent or is reduced or subsidized due to a
    federal, state, or local subsidy.
    it does not appear you have a bona fide lease as defined in the requirements of the act.

  7. #7

    Default Re: Tenant of Foreclosing Property

    Quote Quoting jk
    View Post
    btw: the employee thing: makes removing you even quicker if the room can be considered part of your pay. Once employment terminates, so does your right to stay.

    for the protecting tenants at foreclosure act, one requirement is this:

    it does not appear you have a bona fide lease as defined in the requirements of the act.
    2007 is when my employment ended as an employee, but have done independent services since, which have covered rent. So...given that any work after was not as his employee would/could this change anything?

    Thank you

  8. #8

    Default Re: Tenant of Foreclosing Property

    I got another consultation and at the moment waiting for the 3 day notice to quit for the owner. I have not seen any, though does not mean he was not notified. I do know something came in the mail from the DA. I do not know what it's for.

    The auction was on October 12. Should he have gotten this 3 day notice to quit by now? Is there something he may have done to stop his eviction?

    What is concerning is he may not be willing to leave on his own. He has not done anything to prepare leaving. I tried asking if he'd know if the place sells and to who and he got nasty threatening to kick me and my cat out, but he's supposedly not the owner anymore and I have at least 60 days according to a notice I received.

    Another lawyer I consulted with stated so long as the notice I got is official it should hold.

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