Category: Renting and Tenant Rights

How Do I Quit California Foreclosure Without Bankruptcy?

One strategy is currently filing for bankruptcy, but bankruptcy is not the only means. A property owner can stop foreclosure by following a brief sale, a process which involves selling a home below market value and below the main balance of the loan. Your mortgage lender may agree to a brief sale and apply the proceeds from the purchase as complete satisfaction of your loan.

, Get in touch with your mortgage lender. Advise that you desire to follow a brief sale of the estate, with the approval of the lender. You have to obtain the approval of the lender to take the brief sale proceeds as complete satisfaction of the loan. Absent such an agreement the lender can — and probably will — seek a deficiency judgment against you in court to get the gap between the loan balance and the amount paid off throughout the brief sale.

Get a written agreement agreeing to the sale and waiving its right to seek reimbursement, including a judgment, for any deficiency.

Include a clause in the agreement that determines the cost acceptable to sell the estate.

Sign the agreement. Both you and a representative of the mortgage lender must sign the contract, based on”California Real Estate Law” by William H. Pivar.

Place the estate available on the market available. Think about keeping the services of a real estate professional experienced in short sales.

Surrender the proceeds from the brief sale to the mortgage lender.

Get a written release from the mortgage lender confirming complete satisfaction of your loan obligation.

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Do You Need to Pay Rent on a Foreclosure?

If you are renting your living area, your landlord not paying his mortgage doesn’t mean that you can stop paying your own rent. No matter who owns the property, they could have you evicted if you do not make your payments. Foreclosure may, however, make it more difficult to figure out who to cover, and who to speak to concerning repairs and maintenance.


If a lender forecloses on your leasing flat, you have to know who you should pay rent to, the Nolo legal site says. After a lender advises a landlord in writing that he is in default on his mortgage, then it may direct you along with any other tenants to begin paying it your rent checks instead. In the event the lending company is dealing with a glut of foreclosures, then it might not inform you, in which case you might wind up paying the landlord after he is no longer the owner.


Even if the lender starts receiving your rent check, Nolo says, the landlord is still legally responsible for apartment maintenance. As he is no longer making money off the flat, it’s quite possible he will refuse. Normally, in that situation, tenants can pay for repairs and deduct the cost from their rent–but as the lender is not in control of maintenance, it may try having you evicted for nonpayment instead.

Time Frame

Following the foreclosure, the lender may sell your leasing home to someone else; if they can not sell it, Nolo says, the lender will need to hang onto it. If the lender or a new owner would like to evict you, federal law gives you 90 days to remain if you are renting by the month. If you have a lease, you can stay until the conclusion of the lease, unless the new owner plans to proceed; in that circumstance, you have 90 days. The law applies only if you kept up the rent, and if you signed your rent prior to the landlord received a notice of foreclosure.


From time to time, the”New York Times” says , the landlord will contest the foreclosure, and tell you to continue paying him the rent, though the lender or the new owner insists they should find the money. The paper recommends that whichever side gets the legal paperwork demonstrating their ownership should find the money, but you should keep records of your payments.


If you’ve prepaid rent to the landlord to find a discount, then the lender demands rent for this period, the”Orange County Register” states, you might need to pay again. The federal law doesn’t have any exemptions protecting tenants who prepay from having to cover. One California judge says that tenants should pay the lender, then sue the landlord to return the prepayments.

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How Can a Creditor Put a Lien on My House?

Collection methods vary depending upon the company collecting, but most fundamental set tactics include calls and letters informing an individual of the debt and requesting that he make a payment. Should the debtor don’t do so in a reasonable time period, the lender may require more drastic action to recoup the debt, such as recording a property lien against the debtor’s home.


Property liens set by creditors are called judgment liens. In order to get a judgment lien, a creditor must have a legitimate court ruling on what to base its request. A court ruling is obtained by A creditor from winning suing the debtor. The court will subsequently award a certificate of judgment to the lender, which it could file with the property records office in the county in which the consumer’s home can be found to formally record the lien.

Time Frame

Even if the debt is legitimate, the lender may only acquire a judgment lien by suing the debtor over the time limitation given by the debtor’s state of residence. This statute of limitations protects users from suits and following land exemptions debts too old to lawfully impose. If a creditor files a suit following the permitted time period in the debtor’s condition, the debtor may contest the litigation on these grounds and have it dismissed. MSN Money cautions that creditors could still file lawsuits following the statute of limitations has expired, even though these tactics are prohibited.


In some cases, a lender will acquire a suit against someone without knowing whether or not he owns some property that the creditor may place a lien against. Should this happen, the lender may ask a court order requiring the debtor to appear in court and disclose his available assets so that the creditor may enforce its ruling.


After a creditor documents a property lien, then the land lien remains in effect until the person pays off the debt to the lender or until the judgment on which the lien is based expires. Like the statute of limitations for collecting debts, the statute of limitations for enforcing decisions varies from state. Judgments, nevertheless, are renewable. California, by way of instance, includes a 10-year statute of limitations during which a creditor may enforce its ruling. If it Is Not Able to do this during the 10-year Time Period, the creditor may renew the judgment–and the land lien–for another 10-year period


After a creditor becomes a lien holder, its debt is secured by the house it records a lien against. If the debtor still neglects to settle the debt, the lender reserves the right to request a writ of execution in the court and then foreclose on the property. Provided the lender uses the proceeds from the foreclosure sale to pay off some previously recorded liens against the home, it may keep any extra proceeds.

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Tenants' Rights Against Evictions

Renting an apartment can provide less stability than owning an home. You might not ever have to be worried about it, but the chance of being evicted from your unit is present. You provide just cause for an eviction. Sometimes, your landlord tries to sue you for his own gain or legitimate reasons outside your control. In California, strict laws exist to regulate the flooding process and protect tenants' rights.


A tenant may do something to prompt the eviction actions, such as not paying the rent on time, violating different terms of the rental or damaging the apartment beyond what the law considers”normal tear and wear.” In San Francisco, according to the city’s Tenants Union, landlords can only evict tenants covered by rent control for one of 15″simply causes” Some of those points are beyond the tenant’s control. By way of example, landlords can evict tenants in certain instances if they wish to make significant repairs or move in the unit occupied by a tenant. Local laws regarding evictions change; nonetheless, historically, rent control cities such as San Francisco tend to have regulations.

Time Frame

Your landlord can end a month-to-month tenancy in California using a 60-day note if all tenants residing in a unit have lived there for more than a year. If any tenant has lived in the unit for under a year, just a 30-day note is required, as stated by the California Department of Consumer Affairs. In San Francisco and many other rent control towns, this note must be accompanied by an explanation of the”just cause” reason for termination of their tenancy. You may get a 3-day notice if you commit a crime that warrants eviction. If it’s possible to remedy the problem within 3 days, however, by paying past due rent or eliminating an illegal pet from a unit, as an example, California law requires your landlord to provide you with this opportunity and keep the tenancy if you comply.


Back in California, a landlord can”serve” a 3-day, 60-day or 90-day detect in one of 3 ways. She is able to serve it to you at home or work, serve it to some”a person of suitable age and discretion” at your house or work, or put a copy of the eviction notice in a”conspicuous” place at your apartment. In the latter two instances, your landlord should also send you a copy of the eviction notice in the email. The Department of Consumer Affairs clarifies that if you don’t go out in response to this notice, the landlord must file an”unlawful detainer lawsuit” in Superior Court. You have the right to a jury trial in California any time a landlord tries to evict you in your unit, even if you owe back rent.

Ellis Act

Ellis Act evictions are a point of contention in San Francisco, particularly in California. Beneath the Ellis Act, a landlord can evict all tenants from all units”unconditionally” with the intention of”going out of business” As the San Francisco Tenants Union advises, however, landlords often abuse the provision. In some cases, landlords invoke the Ellis Act so that they can convert apartments into condo units for sale. The grip on such actions tightens. Ellis evictions need 1-year notice for seniors and handicapped persons. All tenants need to get 120 days’ notice. Landlords can re-rent units under the Ellis Act, but if they do so inside 5 years, they need to offer the former tenants first right of refusal, and rents can’t exceed what the evicted tenants were already paying.

Owner Move In

San Francisco landlords have been known to mistreat”owner move in” evictions. By way of example, a landlord might assert that he or even a”close relative” plans to move in the unit only to get rid of a rent-controlled tenant in favor of a new tenant who will pay exchange rate. San Francisco just allows one proprietor move-in flooding per building. The landlord or relative must move into the unit within 3 weeks of evicting the tenant. He has to dwell in the unit for three or more years, according to the Tenants Union.

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