Legal Question in Real Estate Law in California
Bank foreclosed on landlord
I live in a tri-plex. We found out last month that our landlord hasnt been paying the mortgage on the property. As far as we know it is now in foreclosure. I would like to know my rights as far as the security deposit that was given to the landlord and what happens to us/the tennants? I realize we can stay here till the property has gone through foreclosure. But, what happens after that?? Do we stay till it is bought by another buyer/owner? And will we be notified of what is going on with the property??
thank you
2 Answers from Attorneys
Re: Bank foreclosed on landlord
You may be victims of rent skimming. This is a practice in which buyers acquire property with tiny down payments, take large security deposits and advance rent payments, then default. It is also practiced by owners of money-losing properties. When done deliberately it is fraud and when done on a large scale a crime. You might want to talk to the lending bank's fraud-prevention people or to the white-collar-crime specialist at the district attorney's if you suspect foul play. Of course, innocent landlords get into hot water from time to time.
Re: Bank foreclosed on landlord
The new owner will need to evict you but you can offer to stay on as a tenant if the new owner agrees. You will have to sue the old owner for your deposit.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
