Saturday, January 31, 2009

Information For California Tenants Renting Homes In Foreclosure

An article in La Prensa San Diego by attorneys Marc Whitham and Dolores López with the Housing Department at the Legal Aid Society of San Diego, Inc. sets forth an easy to understand explanation of the legal process that tenants in California face when they find themselves renting a home that is in foreclosure.

Among the points in the article is a reminder that, while homeowners get only 3 days notice before eviction after foreclosures, tenants are entitled to 60 days notice before being evicted, and accordingly, should resist any attempt by the new owner or foreclosing lender to bully them out of the premises without first properly serving the 60-day notice upon them.(1)

For the article, see Tenants of Foreclosed Homes Often Short-Changed by New Owners.

(1) It may be important to note that, in the case of a tenant who receives a Section 8 federal rent subsidy (ie. a "Section 8" tenant), it has been reported that federal law prohibits a new owner, including foreclosure purchasers and foreclosing lenders, from evicting Section 8 tenants unless they first go to court and prove they’re being economically harmed by having a tenant remain in a building, or show other good cause. However, many Section 8 tenants panic and don’t fight eviction notices, not realizing they have rights. For more on this point, see Foreclosures hit tenants (Activists: New owners trample on renters’ rights).

For the specific federal regulation on this point, see 24 CFR 982.310(d)(1). Go here for the regulations (24 CFR 982) regulating the Section 8 rent subsidy program, generally. SkimmingKappaRent