Do I still have to pay rent when property is in foreclosure?
Rialto, CA |
Century 21 realtor stopped by to leave papers wanting to help him save the house. The paper outlined what is owed and a amount they are asking for if it sells. The possible sale will be as early as March.
Yes, you are legally obligated to pay rent to the current landlord unless and until the trustee's sale occurs. If you do not, the current landlord can serve you with a 3 day notice to pay rent or quit, and then sue you in an unlawful detainer lawsuit.
If the foreclosure sale actually takes place, you are entitled to a 90 day notice, but you must continue to pay rent to the new owner (which is often the bank).
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This Avvo.com posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult with your own attorney.
I agree with Mr. Chen, unless and until a foreclosure sale does take place, you are obligated to keep paying rent. Failure to do so may result in your landlord filing an unlawful detainer case against you.
As counsel pointed out, until the home is sold at a trustees sale your landlord still owns the property and you are required to pay rent. The fact that the foreclosure proceedings have been initiated does not mean the landlord will not be able to work out a resolution with the bank.
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