After a foreclosure the resident of the property – be it the note holder or another authorized occupant – does not necessarily lose all rights to possession.  California Civil Code section 1161b provides, subject to certain qualifying conditions, that the tenant under a month to month to month tenancy or a periodic tenancy, in place at the time of the foreclosure, is entitled to 90 days notice before an eviction proceeding can commence.  California Civil Code section 1161b(a).

In addition, California Civil Code section 1161b(b) provides that “tenants or subtenants holding possession of a rental housing unit under a fixed-term residential lease entered into before the transfer of title at the foreclosure sale shall have the right to possession until the end of the lease term”, subject to certain exceptions.  1161b(b).

Landlord can terminate the fixed term lease if any of the following conditions apply:

(1) The purchaser or successor in interest will occupy the housing unit as a primary residence.

(2) The lessee is the mortgagor or the child, spouse, or parent of the mortgagor.

(3) The lease was not the result of an arms’ length transaction.

(4) The lease requires the receipt of rent that is substantially less than fair market rent for the property, except when rent is reduced or subsidized due to a federal, state, or local subsidy or law.

For help with post-foreclosure evictions contact us at www.schorr-law.com, 310-954-1877, info@schorr-law.com