When it comes to possession of a property, as long as you desire to live there, you are obligated to pay rent. If you wish to remain in the property, your lease will likely transfer with the sale provided the new owner is an investor. If the new owner will be moving into the residence, you will have 90 days after the foreclosure sale to vacate.
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You should contact HERA as a California resident. This organization is very well-versed in the rights of residents including tenants in housing at risk of foreclosure.
This is not a substitute for a consultation with an attorney or advocate with a background in housing and foreclosure law.
Yes you must continue paying rent. Here's a recent article in Union Tribune with additional contact info at the end http://www.utsandiego.com/news/2010/jul/05/some-advice-for-renters/?page=1#article
Yes, tenants must continue to pay rent after foreclosure of the leased property. It most circumstances federal law entitles tenants to 90-days notice prior to removal by landlord after foreclosure. Yet, there are exceptions to this rule. For example, if your tenancy is not bona fide, ie you were renting from a family member or living in the property for free, you may only be entitled to a 3-day notice before eviction proceedings begin. My advice, seek a landlord-tenant lawyer in your jurisdiction and see what protections you are afforded under the law. It may also be prudent to talk to the new landlord and see if he desires to keep you as a tenant long term.
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