Foreclosure and lease?

Question:

I am 7 months into a 12 month residential lease in Cupertino Ca, and the property is being foreclosed--actually going on the auction block this month. Will the remainder of my lease be honored by the new purchaser of this property or can he terminate by lease?

Thanks

Answer:
if the new owner wants you to leave you are going to have to leave

in a foreclosure, once the bank forecloses all liens/leases which are junior meaning they came after the note was recorded are wipe out

You need to read your lease agreement if there's any clause on foreclosure. Technically, the new owner should honor the balance of the lease.

i know that if a person sells the new owner must honor the lease but i believe on a foreclosure they could have the property vacated

The foreclosure terminates the lease!
The new owner (usually the lender that forcloses on the property) does not have to honor the lease. You will probably receive a 30 day notice to vacate the property so that they can sell it to a new buyer.

Hi, I am very knowledgable in this area. The foreclosure wipes out the lease. You need to move out by auction date or you'll be considered as a holdover tenant and the new owner will evict you. Just make sure the property is really in forclosure and this is not an attempt by the owner to fool you into leaving.

Your recourse is to sue your landlord for damages for having to break your lease early.

Regards

Foreclosure and lease?

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