The foreclosures are abundant in Orange County and the impact is felt by many - including tenants. With the sharp increase in investment purchases during the boom, many of the properties currently in foreclosure are tenant occupied.
What Happens When the Home You Are Renting Forecloses?
Tenant rights have been addressed in recently weeks under the 'Helping Families Save Their Homes Act'. On May 20th, 2009, Obama signed the new law that extends the rights of a tenant to stay in the foreclosed property from 60 days to 90 days.
Recently I had a client ask whether this would apply only to homes foreclosed from this date forward or those that have recently been foreclosed on. From contacting various tenant's rights groups, it looks as though the 90 days applies to homes foreclosed from May 20th, 2009 and forward, otherwise, it is still 60 days.
Also, it is worth noting that the following language is included in the law: "the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property." In other words, you still may be required to pay rent to the lender that now owns the property.
If you have questions about your rights, I'm happy to assist. You may also find assistance at various Tenant Advocacy sites. For example, TenantsTogether.org, California's Statewide Organization for Renters Rights.
Originally posted on OC Real Estate Voice.