Foreclosure occurs when the owner of real property cannot pay his mortgage and the bank takes back the property and sells it, usually at an auction. After the property is sold, the new owner frequently has to deal with occupants who were living at the property before the foreclosure. Purchasers of foreclosed property need to understand the necessary steps required for them to lawfully regain possession of the property. This article outlines those procedures.

Evicting Existing Tenants

Once a purchaser obtains title to the property through foreclosure, he or she cannot just change the locks to the home. A tenant can be evicted in California if the rental property is being foreclosed upon, and the tenancy will not be continued. The buyer can evict any tenants by a special 90-day notice. Tenants being evicted due to sale or foreclosure must move out, and do not have the option to “cure” an issue in order to stay.

After the notice expires, if the tenant remains, the buyer files a special unlawful detainer action. The eviction process then proceeds through the court to a trial, followed by a lockout by the Sheriff if the plaintiff is successful.

A landlord’s ability to utilize the above procedures may depend on whether the unit is in a jurisdiction that has just-cause for eviction protections. Just-cause eviction laws protect tenants from eviction unless there is a just-cause reason to terminate their tenancy. These reasons include a tenant’s non-payment of rent, breach of the lease agreement or nuisance. Other just cause reasons include owner move-ins, and the owners’ plan to take the property of the rental market.

There are several cities in California that have eviction control laws. California tenants who do not live in a city with local eviction protection laws may be covered under the new state law eviction protections. The building they live must be at least fifteen years old, and meet all other requirements under the state’s law.

If the tenant lives in a jurisdiction that has a just-cause for eviction law, he or she cannot be evicted during or after foreclosure, unless the property owner has a just-cause reason under your local ordinance or under state law, whichever is applicable to your tenancy. Otherwise, the tenant cannot be evicted from the dwelling.

For tenants living in a unit not covered by either state or local eviction control laws, a new owner can extinguish a term lease by serving the ninety-day notice discussed above and then following through with the eviction process.

Evicting The Former Owner

The process is different if the occupant is a former owner as opposed to a tenant. In that situation, the former owner can be evicted by serving a special 3-day notice to quit. If the owner does not move out in the 3 days, the new owner must initiate and complete the formal eviction process in court in order to get possession of the home.

Please contact Lynx Legal Service with any questions regarding the above issues at 888-441-2355 or [email protected]. Our experienced professionals are standing by to assist in any way we can.