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Tenants in foreclosure and "PROTECTING TENANTS AT FORECLOSURE ACT" of 2009

San Diego, CA |
Filed under: Landlord-tenant

I have a fixed-term lease on a home that was foreclosed upon in Nov. 09. The bank currently holding the deed to the house has said that my lease is invalid. I don't think this is correct:
1)I've had a lawyer examine the document and it is a valid legal contract.
2)I signed the lease Jan 2009; the first Notice of Default was recorded July 2009.
3)the Protecting Tenants At Foreclosure Act signed by Obama May of 2009 protects my right to stay through the lease term (I pay rent at market rate; I'm not a relative; the bank has no intention of occupying the property).

Is there any loop-hole, subtlety or anything else that would allow the bank to force me out before the term is up? My lawyer says no, but my experience is that this is a new area of law with few experts.

Attorney Answers 3

  1. Your lawyer examined the document and said it is a valid legal contract. You should follow the advise of your lawyer. Ask questions about your situation and have your lawyer explain the details so that you understand all your options. I have said to other posters that "It doesn't make sense for a lawyer hearing a few isolated facts over the Internet to second-guess the lawyer representing you."

    Good luck and God bless you.

  2. In the State of Illinois, I move the court to stay the order of possession (the banks right to enter the property) pursuant to the Statute you referenced. There has been very little interpretation of the statute, so I would ask the court for the term of the lease and hope you get that or some other additional timeline. Whether this mechanism works in California, I do not know. However, if orders of possession are issued in California foreclosure cases, then I would say that a Motion to Stay the order of possession is your best bet.

  3. I agree with Mr. Brinkmeier but would also suggest that you consider what is most beneficial to you. Yes, you may have a valid legal contract which would provide you an opportunity to stay in the premises until the termination date of the lease. Is the termination of the lease a date further into the future than the 90 day notice you would otherwise be entitled to under the Protecting Tenats At Foreclosure Act? Just an additional thought to consider. . . .

    The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.

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