What are the rights of a tenant upon foreclosure?

When a home in California is foreclosed, a tenant living in the property has certain rights. The first right is the right to be given “adequate notice” before the tenant must move out. This means that the tenant must receive a notice of foreclosure at least 90 days before they have to move out. Following the notice, a tenant has the right to remain in the property until the end of the tenancy. If the tenant’s lease has an expiration date that is after the foreclosure sale date, then the tenant will continue to pay rent and remain in the property until the lease ends. If the tenant’s lease does not have an expiration date, then the tenant is responsible for paying rent until the foreclosure sale is final. If the tenant has paid rent for the month that the foreclosure is final, then the tenant has the right to stay in the property until the end of the month. Additionally, regardless of the tenant’s rights under their lease, the tenant has the right to receive a notice of sale at least 21 days before the foreclosure sale. This will alert the tenant to the possibility of the foreclosure which will give them sufficient time to find a new place to live. Tenants living in the property at the time of foreclosure also have the right to receive reimbursement of their security deposit and prepaid rent within 21 days of the foreclosure sale. The tenant will also be entitled to receive any other funds that were paid to the landlord as part of their tenancy. It is important for tenants to know their rights and understand the process of foreclosure so that they can protect themselves if their landlord’s home is foreclosed on.

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