Department of Consumer Affairs   Most requested Los Angeles County websites
County Home Home About this SiteAbout this Site Online Services Contact Us Public Info Public Info Public Alerts Public Alerts Language Privacy
Los Angeles County Department of Consumer Affairs LA County Home Page DCA Home Page

 

After the home is sold in a foreclosure sale

A foreclosure sale means handing over the keys.NEW OWNERSHIP: Once a home is sold, the new owner usually will want to take possession. Sometimes they do not mind having a tenant and may want to work things out. What needs to be done next depends on if you are the previous owner or just a tenant.
If you are the previous owner:

  • The new owner of the home only needs to give you a Three Day Notice to move. If the prior owner does not move by then, the new owner can begin the Unlawful Detainer process. 

If you are a tenant:

  • If you are under a lease created prior to the recording of the Deed of Trust that was the subject of the foreclosure, it may still be valid. The new owner may have to honor the lease or work out an arrangement with you. You are responsible to the new owner for rent from the date of sale, and in some cases may have to pay rent again and then attempt to recover the overpayment from the previous owner.
  • If you entered into a rental agreement after the recording of the Deed of Trust involved in the foreclosure, the existing lease will usually be terminated by the foreclosure sale. The new owner can begin the eviction process by giving notice to vacate within 60 days, and in some cases as little as three days. 

EXCEPTIONS: There are many exceptions and conditions that can apply in these cases based on both California Code of Civil Procedure and case law, so if you find yourself facing this situation, it is very important to get legal advice for your particular case. To speak to an attorney, you can call the Los Angeles County Bar Association Attorney Referral at (213) 243-1525.

YOU STILL HAVE RIGHTS: In any case, without going through the formal eviction process, the new owner can not:

  • Throw you into the street
  • Cut off utilities
  • Change your locks

Also, foreclosure usually does not forgive the previous owner for any security deposits or advance rent payments made by the tenant. If the landlord did not declare bankruptcy, the tenant can still sue the previous owner, and in some cases the new owner, for damages.

Back