Understanding Post-Foreclosure Evictions in California
Foreclosure is a challenging process for California homeowners which doesn’t necessarily end when the foreclosure sale is complete. For many purchasers, the next hurdle is understanding the rights and responsibilities of occupants still residing at the premises. Here is an overview of common issues raised by foreclosures involving occupants remaining at the premises post-foreclosure.
What Happens After a Foreclosure Sale?
When a property is foreclosed upon in California, it is typically sold at a trustee’s sale. The new owner could be the lender who foreclosed or a third-party buyer. Once the sale is finalized, the new owner gains legal ownership of the property. However, this does not automatically grant them the right to immediate possession if the property is still occupied.
The occupants—whether they are the former homeowners or tenants—are entitled to certain legal protections under California law. These protections are designed to provide a fair and orderly process for transitioning possession of the property.
Eviction Process for Former Homeowners
If the former homeowner remains in the property after the foreclosure sale, the new owner must follow California’s formal eviction process to regain possession. This typically involves:
- Serving a Notice to Quit: The new owner must serve the former homeowner with a written notice to vacate the property. In most cases, this is a 3-day notice to quit. The notice informs the occupant that they must leave the property within three days or face legal action.
- Filing an Unlawful Detainer Lawsuit: If the former homeowner does not vacate within the notice period, the new owner can file an unlawful detainer lawsuit (eviction case) in court. The former homeowner will have the opportunity to respond to the lawsuit and present any defenses.
- Court Proceedings and Judgment: If the court rules in favor of the new owner, it will issue a judgment for possession. The court may also issue a writ of possession, which authorizes the sheriff to remove the occupants if they do not leave voluntarily.
- Sheriff’s Eviction: If the former homeowner still refuses to vacate, the sheriff will carry out the eviction. This is the final step in the process.
Protections for Tenants in Foreclosed Properties
Tenants living in a foreclosed property have additional protections under both California and federal law. The Protecting Tenants at Foreclosure Act (PTFA), reinstated in 2018, ensures that tenants are not abruptly displaced after a foreclosure sale. Key protections include:
- 90-Day Notice Requirement: Bona fide tenants—those who entered into a lease agreement in good faith—are entitled to at least 90 days’ notice before being required to vacate the property.
- Lease Continuation: If a tenant has a valid lease that extends beyond the foreclosure sale, the new owner must honor the lease terms unless the new owner intends to occupy the property as their primary residence. In such cases, the tenant is still entitled to a 90-day notice.
California law also provides additional safeguards for tenants, such as requiring the new owner to provide written notice of the foreclosure sale and their intent to terminate the tenancy.
Defenses Against Eviction
Both former homeowners and tenants may have defenses against eviction in certain circumstances. For example, if the notice to quit was not served correctly or did not comply with legal requirements, the eviction case may be dismissed. The new owner’s failure to honor a tenant’s existing lease also provides grounds for dismissal of the action. In rare cases, former homeowners may challenge the validity of the foreclosure itself as a defense against eviction.
Navigating post-foreclosure evictions can be complex, and the stakes are high for all parties involved. Accordingly, it’s in your best interests to hire an experienced eviction specialist like Lynx to handle your case from start to finish. Contact us today at 888-441-2355 or info@lynxlegal.com. Our experienced staff is standing by to complete the intake or answer any questions you may have.