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 law and may be evicted by the foreclosure purchaser for no cause. But, under a new law that came into effect on July 8, 2008, these tenants are entitled to 60-days notice of termination of their tenancy. [And, the new landlord may also be happy with the tenant and keep renting to them.]
Since 2008 LORH has been successfully prosecuting affirmative lawsuits against these banks for bad faith business practices. We are interested in hearing what San Francisco tenants have experienced in post- foreclosure situations.