What happens if you pay the rent on time but your landlord did not pay the mortgage and the house was foreclosed by the bank?

Effective on September 9, 2008, in California, lenders need to give tenants 60-day notice to move out if the property is foreclosed. (California Civil Procedure section 1161b).

The law does not allow tenants to stay rent free. Tenants still need to pay rent during those 60-day notice period. If tenants fail to pay the rent during this period, lenders can serve 3-day notice to pay rent or quit.

For section 8 tenants, 90-day notice is required. (California Civil Code of Procedure Section 1954.535).

The rule does no apply to owner of the property. Lenders only need to give a 3-day notice to quit (California Civil Code of Procedure Section 1161a(b), 1161b(b)).