Forclosure Alert

Many tenants are now facing situations where the house or apartment they live in is subject to a foreclosure sale. We have several of these cases, most of which involve a great deal of deception. So far the new owner banks seem to be blatantly ignoring the tenant’s rights, trying to get tenants to sign “cash for keys” agreements, telling tenants they are being evicted, ignoring tenant inquires, letting the utilities get shut off, and/or filing frivolous eviction lawsuits.

Tenants in units covered by “just cause” eviction ordinances, like in San Francisco, Berkeley, Oakland, Hayward, Los Angeles, Santa Monica (and others) CANNOT be evicted just because there has been a foreclosure. Gross v. Sup. Court (1985) 171 Cal.App.3d 265 [Purchaser of property at foreclosure proceeding, as successor to the landlord, was subject to rent stabilization ordinance which limited the grounds for eviction.]

Tenants in other cities, where there is no local rent ordinance, come under state and federal law. California Law now provides for 60-days notice. However, under the 2009 Federal Protecting Tenants At Foreclosure Act, “bona fide tenants” are entitled to enforce their existing lease and are otherwise entitled to at least 90-days notice before their tenancy is terminated.

Since mid 2008 we have been busy suing banks for failing to observe these laws. We have successfully prosecuted cases against the worst-offending banks and their attorneys, for malicious prosecution, wrongful eviction, retaliation, habitability and harassment. We are interested in hearing what San Francisco residents have experienced in post-foreclosure situations.

[video from KRON4]