Legal Question in Landlord & Tenant Law in California

We rent a house in california and last week received the "notice of trustees sale" on the door. Landlord claims that its false that they are trying to short sale the house. What options do we have?

Can they still short sale after the auction date has been posted?


Asked on 1/25/12, 9:36 am

1 Answer from Attorneys

I forget the exact deadline but a borrower has the legal right to redeem up to a few days before the sale, and the lender can allow them to redeem until the trustee's sale occurs. So your landlord has until a few days before the sale at least to close escrow on the sale. Considering how short the time is between notice of sale and the sale date, however, unless he is in escrow he is dreaming about completing a short sale in time. The good news for you is that a foreclosure sale is not much different than if he sold the property to another investor/landlord. Your lease remains in effect if you have one. If you are on a month to month rental, you have at least 90 days before the new owner can have you out - which is 30 - 60 days more than if the sale was not by foreclosure. Also, if your lease is up in less than 90-days after the foreclosure, you get until 90 days, whereas if it was not a foreclosure you could be removed as soon as the lease ran out. So actually a foreclosure sale would be better for you.

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Answered on 1/25/12, 10:29 am


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