Lease-Option Tenants In New Townhouse Development Caught Between Conflicting Demands For Rent From Builder In Foreclosure & Stiffed Mortgage Lender

In Bakersfield, California, KBAK-TV Channel 29 reports:

• Creekside Townhomes is a row of 32 units at 500 White Lane. Tenants can lease to own, but the project is facing financial troubles.

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• On Dec. 22, tenants' received a letter from a law firm representing First Regional Bank. The letter tells tenants' to make all future rent payments directly to First Regional Bank instead of to the landlord, Project Manager Robert Hernandez.

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• But four days after tenants' received the letter from the bank, Hernandez issued his own notice. In it, Hernandez writes that the bank acted "prematurely" in issuing the notice and says the bank letter is "not applicable". Hernandez tells tenants' to "please disregard this (the bank's) notice."

• Tenants' are left wondering who, if anybody they should hand over their rent. If the property goes into foreclosure, some wonder if they'll lose their deposit or other lease payments.

For the story, see Foreclosure worries loom for Creekside Townhomes tenants.