Can a lender foreclose on a rental property?

Yes, a lender can foreclose on a rental property in California. California foreclosure law allows lenders to take possession of rental property if a borrower has defaulted on their loan. A lender is legally permitted to repossess property— whether it is owner-occupied or a rental property— when the borrower has failed to make payments as per the agreed upon loan terms. Before a lender can foreclosure on a rental property in California, they must prove to a court that the borrower has defaulted on their loan. This is done by filing a lawsuit, and if the court finds in favor of the lender, they will issue a foreclosure order. The foreclosure order gives the lender the right to repossess the property if the borrower does not make the necessary payments or attempt to get caught up on their loan. Once the foreclosure process has begun, the lender will repossess the property and can sell it or rent it out. The lender can also evict the tenant, if there is one, as soon as they repossess the property. The tenant may be eligible for relocation assistance, depending on the tenant’s circumstances. Overall, a lender can indeed foreclose on a rental property if the borrower has defaulted on their loan. In such cases, the lender will need to file a lawsuit and then repossess the property. The tenant may be eligible for relocation assistance.

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Can a lender foreclose on a rental property?

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