Posted by Ben T on February 23, 2009 at 09:16:38:
Certainly I have no doubt that some leases are recorded. In fact, in some states leases of a certain length are not enforceable unless they are recorded. That said, I don’t know of any situation where a lender would make a loan without requiring that the leaseholder subordinate to the new loan.
Ben
Landlord in foreclosure, 2 year lease - Posted by Brian (CA)
Posted by Brian (CA) on February 22, 2009 at 20:20:32:
I recetnly signed a 2-year lease (total with options) on a home I am renting in Northern CA. If for whatever reason the landlord goes into foreclosure tomorrow, and the bank takes the property back, can the bank evict me even though I have a signed lease? Thanks
Re: Landlord in foreclosure, 2 year lease - Posted by Dave T
Posted by Dave T on March 03, 2009 at 07:49:50:
Yes, they can. Leases don’t survive foreclosure. If the bank is smart, after foreclosure they will let you stay and collect your rent because an occupied property protects their interest better than a vacant property.
Can you Take over from LL? - Posted by DJ-nyc
Posted by DJ-nyc on February 23, 2009 at 07:59:52:
Just curious if you may have a Deal. An opportunity?
Maybe a look see?
DJ-nyc
Re: Landlord in foreclosure, 2 year lease - Posted by Kristine-CA
Posted by Kristine-CA on February 22, 2009 at 21:15:12:
Yes, you would be evicted. However, the lender would is required to
give you proper notice. 30 days notice for tenants with tenancy less
than 12 months.
Sometimes leases are binding: 1) the lease needs to be executed prior
to the defaulting loan and 2) the lease would need to be a recorded
document.
Re: Landlord in foreclosure, 2 year lease - Posted by Ben T
Posted by Ben T on February 23, 2009 at 24:28:45:
Well yes, if there was a lease recorded ahead of a deed of trust or
mortgage, then it would survive a foreclosure. However, I can’t think
of any circumstance of that type. No lender would make a loan with a
lease ahead of him. So as a matter of practicality, a lease would
typically be extinguished by a foreclosure.
Ben
Re: Landlord in foreclosure, 2 year lease - Posted by Talya
Posted by Talya on February 22, 2009 at 21:31:36:
The law has been changed in CA, new owner has to give at least 60 day notice to terminate to tenant living in a foreclosed property.
Re: Landlord in foreclosure, 2 year lease - Posted by Kristine-CA
Posted by Kristine-CA on February 23, 2009 at 08:11:59:
Recorded leases don’t necessarily prevent a lender from making a loan.
Recorded leases are common on mixed use and commercial properties,
especially long term leases. Agriculture leases are often recorded and
sometimes include residential units.
Re: Landlord in foreclosure, 2 year lease - Posted by Kristine-CA
Posted by Kristine-CA on February 23, 2009 at 08:06:00:
Thanks for the correction. The was changed in 7/08 to 60 days for non-
owner tenants.