My husband and I signed a month-to-month lease in June 2007 for a house in Laguna Niguel, CA. We found out in October 2007 the house was being foreclosed on by our landlord. We received an eviction notice from the 1st note holder (Countrywide) in the beginning of November, saying the property was foreclosed on and we needed to be out in 30 days if we were not the owners of the property (in which case we had 3 days). In mid-November, we were contacted by a real estate agent who was working with Countrywide that offered us a "Cash for Keys" program. Countrywide would give us $1900 to be out by November 30, $1800 to be out by December 6th, etc. We looked for a place to move into quickly and signed a lease on Tuesday, the 27th, to begin on December 1st. We signed the agreement with Countrywide and faxed it back to the agent on Thursday, November 29th, as instructed. We were told it would take 5 days to get the check.
On Monday, December 4th, I received an e-mail from the agent saying "As promised, I forwarded the "cash for keys" agreement to Countrywide Home Loans. In response, I was told the foreclosure was recinded. The attorney stated in a letter to the Asset Manager the following:
"Because the sale was recinded and Countrywide is not in title, you do not have to honor the C4K agreement."
I have been instructed to inform you of this decision.
What rights do we have? Since we accepted the contract before they revoked (and acted on it), do they have to pay us the $1800? If the foreclosure was rescinded, that means we could have continued to live there, and would not have had to sign a lease and pay an additional $350/month in rent. What action should I take? We are now in a financial bind as we were counting on that money.