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The house I'm renting has been foreclosed on

 
 
hawkeye10
 
  2  
Reply Mon 13 Dec, 2010 02:13 pm
in case you missed this

Quote:
The Northern California cities of Modesto and Stockton are leading the
nation in foreclosures; and in recent months, foreclosures nationwide have
reached a 20-year high. Although many tenants in these and other cities
are losing their rented homes because of foreclosure, Berkeley tenants
remain protected against this type of eviction.
Rental units in Berkeley are generally covered by “good cause for eviction”
protection.This means that the owner of any residential rental—in this
case, the bank—must cite one of the “good causes” in asking tenants to
leave. Foreclosure, which amounts to a change of ownership, is NOT a
good cause for eviction in Berkeley
.
However, just because the bank does not have the right to evict a tenant
does not mean that the institution will not make the attempt. If a tenant
has received a notice to quit he or she should not ignore it, even if no
good cause has been stated.Tenants should make every effort to contact
that financial institution, both informing the bank of the good cause protection,
and also inquiring about how to make rent payments. If tenants
can’t get a clear answer, they should put the rent in escrow until the issue
is resolved.Tenants are still responsible for rent, even after a property has
gone through foreclosure.
Tenants who have received such notices should take the following action:
1. Call the Rent Board. Staff members will review the notice, apprise tenants of their rights and, when appropriate, contact the new owner.
2. Consider contacting an attorney.
Tenants may want to select a private attorney who is familiar with Berkeley rental laws.Tenants can also
inquire at the Rent Board whether they qualify for representation at a non-profit agency funded by the Board. But it is wise to find an
attorney, and to do it quickly. Failure to respond to even a faulty notice can result in eviction, so tenants should enlist the aid of a professional
who is adept at navigating the legal system.This is the best way to avert the missteps that could result in an eviction.
3. Either tenants or their legal representative should contact the bank (foreclosure notices should include a contact name and address), stating
their intent to continue paying rent, to confirm that the bank’s representative is the correct person to whom rental payments should be
addressed, and to state that the tenant understands that Berkeley’s rental laws do not allow eviction in the event of foreclosure. If possible,
tenants should try to get a written confirmation of ownership to ensure that they are paying rent to the property's true titleholder.
If tenants even suspect that a foreclosure is in the works and have questions, they should always feel free to contact a Rent Board housing
counselor at 981-RENT for more information.
http://www.ci.berkeley.ca.us/uploadedFiles/Rent_Stabilization_Board/Level_3_-_General/38963_BRSB_news_Fall08_61.pdf
0 Replies
 
High Seas
 
  1  
Reply Mon 13 Dec, 2010 02:44 pm
@Cycloptichorn,
You're not paying rent to anybody right now? I doubt even the Oakland Rent Stabilization Board meant to stabilize rents at zero. You probably should open an escrow account and deposit the agreed rent there once a month until ownership is cleared up - otherwise you're not protected from eviction.
Cycloptichorn
 
  1  
Reply Mon 13 Dec, 2010 02:50 pm
@High Seas,
High Seas wrote:

You're not paying rent to anybody right now? I doubt even the Oakland Rent Stabilization Board meant to stabilize rents at zero. You probably should open an escrow account and deposit the agreed rent there once a month until ownership is cleared up - otherwise you're not protected from eviction.


Well, we paid December rent (to the old landlords) and just found out about this on Saturday. The current plan is to do exactly that (though I'm not sure about any fees that are associated with ESCROWS, if they exist, I'm deducting that **** from my rent).

I just got off the phone with our rent board and they basically told me I have very little to worry about, so that's a relief. My wife has put together copies of every payment and lease agreement, so our documentation is good to go. They have a complete history of our property on file there, I'm going to ride my bike over and pick the thing up from them later this week.

I'm going to call the old landlord here in a bit and see what he has to say.

Cycloptichorn
chai2
 
  1  
Reply Mon 13 Dec, 2010 02:59 pm
For what it's worth.

I bought my house as a bank foreclosure. There were people renting the house until the sale went though.

Seemed to make sense that the bank would want someone living in the house for the rental money.
0 Replies
 
hawkeye10
 
  1  
Reply Mon 13 Dec, 2010 02:59 pm
@Cycloptichorn,
Quote:
I'm going to call the old landlord here in a bit and see what he has to say.

You might want to ask if he has any plans to return your security deposit and last month rent, but dont hold your breath while waiting to hear a yes.....

Cycloptichorn
 
  1  
Reply Mon 13 Dec, 2010 03:00 pm
@hawkeye10,
hawkeye10 wrote:

Quote:
I'm going to call the old landlord here in a bit and see what he has to say.

You might want to ask if he has any plans to return your security deposit and last month rent, but dont hold your breath while waiting to hear a yes.....


Per everything I've read, the bank is supposed to cover those costs once it assumes ownership. Though that's a good point; I'll look into that.

We didn't pay a last month's rent when we moved in, just a $2500 security deposit....

Cycloptichorn
hawkeye10
 
  1  
Reply Mon 13 Dec, 2010 03:02 pm
@Cycloptichorn,
Quote:
just a $2500 security deposit....

JUST!

Ya, you'll be wanting to make sure you know your rights on that chunk of change....
Cycloptichorn
 
  1  
Reply Mon 13 Dec, 2010 03:03 pm
@hawkeye10,
hawkeye10 wrote:

Quote:
just a $2500 security deposit....

JUST!

Ya, you'll be wanting to make sure you know your rights on that chunk of change....


Shrug. That's not an uncommon amount to pay as a security deposit out here.

Cycloptichorn
hawkeye10
 
  1  
Reply Mon 13 Dec, 2010 03:13 pm
@Cycloptichorn,
Quote:
Shrug. That's not an uncommon amount to pay as a security deposit out here.

I am making the assumption that it is enough that it would bother you if you were to lose it.....
Cycloptichorn
 
  1  
Reply Mon 13 Dec, 2010 03:24 pm
@hawkeye10,
hawkeye10 wrote:

Quote:
Shrug. That's not an uncommon amount to pay as a security deposit out here.

I am making the assumption that it is enough that it would bother you if you were to lose it.....


It would, but I'm not concerned about that overly; I would simply stop paying rent if that were to be the case and recoup my funds in that manner.

Cycloptichorn
hawkeye10
 
  2  
Reply Mon 13 Dec, 2010 03:36 pm
@Cycloptichorn,
SO agrees this attorney, my concern would be your credit rating if you were to not be in good standing with the landlord/bank.

Quote:
Steven Alan Fink

Posted 8 months ago. This attorney is licensed in California.
The Protecting Tenants at Foreclosure Act, Pub. L. No. 111-22, §§ 701-704 (2009), which became law on May 20, 2009, applies to state eviction proceedings.

This act requires that a new owner who took title to residential rental property through foreclosure must honor existing leases until the end of the lease term.

There are three exceptions to this rule: 1) if there is an existing term lease and the new owner wants to occupy the foreclosed property as a personal residence before the end of the lease term, 2) if there is an existing term lease with less than 90 days to the end of the lease term, or 3) if the existing lease on the foreclosed property is a month-to-month tenancy or a tenancy at will. In each of these cases, the owner must provide the tenant at least 90 days notice to terminate the tenancy.

It is highly unlikely that the landlord will evict you if you do not pay rent in pay. In fact, that is probably the best way to get your security deposit back
http://www.avvo.com/legal-answers/do-i-have-to-continue-paying-rent-while-the-bank-f-256915.html

It looks to me that the advise from Berkley that you get legal assistance now is sound.
0 Replies
 
shewolfnm
 
  1  
Reply Mon 13 Dec, 2010 05:28 pm
@BillRM,
BillRM wrote:

A foreclosed is a matter of public record so finding out the bank should not be all that hard.


its not.

Go to Zillow.com
you will get a property value and in SOME cases lean holder/bank/owner ..etc

but with just the address, you can plug simple terms into google and find out who REALLY owns the house.. ( bank name etc )
0 Replies
 
shewolfnm
 
  1  
Reply Mon 13 Dec, 2010 05:31 pm
I would not go so far as to start an escrow just for rent that you dont know who to give to. But I would definitely set that money aside no matter HOW long it goes.
0 Replies
 
Cycloptichorn
 
  2  
Reply Mon 13 Dec, 2010 05:31 pm
A little amateur sleuthing reveals that the bank that owns the mortgage is... the same bank I use for my personal finances. Now there's an interesting twist.

Cycloptichorn
High Seas
 
  1  
Reply Mon 13 Dec, 2010 05:40 pm
@Cycloptichorn,
The nominal mortgage holder isn't necessarily owner of clear title to the property - foreclosure proceedings take a long time, and both federal and state legislation is changing. You're OK until year-end, your deposit is protected whatever happens, best bet is to contact current landlord in writing attaching copy of the Rent Board notice, see what comes back. Document everything - paperwork in many banks is sloppy. If you have to retain counsel at some point that work will have to be done by them before they can help you - better to have it ready. And don't change keys without getting legal advice first. Doesn't your law school run a legal clinic? They might be able to advise at no charge. Good luck; and if I don't see you online, also Merry Christmas.
hawkeye10
 
  1  
Reply Mon 13 Dec, 2010 07:04 pm
@High Seas,
Quote:
your deposit is protected whatever happens
Says who??

Quote:

F. Losing Their Security Deposits
Current Law: Property owners must return security deposits within three weeks of the date the renter
vacates or document appropriate deductions. In the case of a transfer of ownership, the former owner is
required either to return the deposit to the renters or to transfer it to the new owner. The new owner is
jointly liable along with the former owner to return the deposit after the renter vacates. Banks claim this
does not apply after foreclosure.
In California, successor owners of property are jointly liable to return security deposits to renters once the
renters vacate.17 The idea is that the renter’s right to the deposit should be protected, leaving disputes
regarding the deposit between the prior and current owner. This is fair and necessary given that renters who
vacate usually need to get back the deposit to put toward new housing costs.
Banks in California take the position that they are not required to return security deposits.18 As defaulting
landlords often do not return the deposits before the foreclosure
, this puts renters in the position of moving
and never getting back their deposits. Renters must then file small claims actions against the bank and former
owner to get the money back, a process that takes months and may lead to a judgment that is difficult to
enforce.
Renters who have not yet vacated are generally well advised to insist on return of security deposit as
a condition for moving.
Some Proposals to Protect Security Deposits:
• Clarify state law to provide that a foreclosing lender, like any
other property owner, must return security deposits to renters
who vacate.
http://www.tenantstogether.org/downloads/ForeclosureReport.pdf

Cycloptichorn has only the right to sue to get his deposit back, when/if and from whom it will come is unknown.
High Seas
 
  1  
Reply Mon 13 Dec, 2010 07:07 pm
@hawkeye10,
Says your own link:
Quote:
Renters who have not yet vacated are generally well advised to insist on return of security deposit as a condition for moving.
hawkeye10
 
  1  
Reply Mon 13 Dec, 2010 07:11 pm
@High Seas,
Quote:
Renters who have not yet vacated are generally well advised to insist on return of security deposit as a condition for moving.
which means that the tennant is in a strong bargaining positon to demand that the problem gets resolved in his favor, it does not mean that getting the security deposit back is not a problem.
0 Replies
 
IRFRANK
 
  1  
Reply Thu 16 Dec, 2010 10:04 pm
Sounds very complicated to me.

Good luck with it all.

Berkeley sounds like an expensive place to live, to say the least.
Cycloptichorn
 
  1  
Reply Thu 16 Dec, 2010 10:10 pm
@IRFRANK,
Oh, it has its' ups and downs. I don't own or drive a car and don't need one, so I can afford to spend more on housing - and the walking keeps me healthy, happy and relaxed all the time.

The food is expensive, but it's also organic and grown locally in many cases.

Gas is expensive, but I don't drive.

Energy is cheap - I leave my windows open 9 months a year. We neither have nor need air conditioning, so there's lots of extra power for whatever I need, with low bills. In Texas my power bill in the summer used to hit $200 or more. Out here it's never more than $20.

Plus, I love it, and that's worth a ton of money.

Re: the house, I talked to the landlord who said he didn't know about anything that has happened; but he didn't sound surprised. I told him I wasn't sending rent on the 1st of the month, but I would hold on to the money until it's sorted out, and he didn't give me a hard time about it. I guess I'm just sort of sitting tight right now until this thing gets sorted out.

Cycloptichorn
 

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