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The City of Los Angeles is one of the departments that assist with Landlord Tenant relations. Together with the state and federal housing programs, landlords and tenants both have an obligation.

Starting December 17, 2008, a renter in the City of Los Angeles cannot be evicted simply because of a foreclosure.

Los Angeles has rent control, which protects some but not all renters. Rent control laws require landlords to have one of 12 specific reasons to evict a tenant. A foreclosure is not one of those reasons.

This protection against foreclosures now applies to all renters in the City of Los Angeles.

  • If the bank or lender which takes over a property in a foreclosure tries to evict a renter, call Los Angeles' rent control hotline at (866) 557-7368.
  • If you receive an Unlawful Detainer, immediately contact a lawyer or a legal aid agency.
  • If you get notice of a foreclosure sale from a financial institution, contact that business to find out how and where to send your rent.

Watch out for scams

After someone buys the property at a public auction, other people may try to collect rent from you. Don't give money to anyone unless they can prove they now own the property.

The "Deed Upon Sale" will tell you who the new owner is. You can get a copy by visiting the Los Angeles County Registrar Recorder’s office at: 12400 Imperial Hwy, Norwalk, CA 90650.

Call for more information or speak with one of the counselors at the Department of Community Affairs  at (800) 973-3370.  If you live outside of Southern California, call  (213) 974-1450. 

NOTICES IN FORECLOSURE

According to California law, your landlord does not have to tell you the home you are renting is in foreclosure. But before the home is sold, a “Notice of Sale” must be posted at the home.

The following notice must also be posted at the home and mailed to you:
“Foreclosure process has begun on this property, which may affect your right to continue to live in this property. Twenty days or more after the date of this notice, this property may be sold at foreclosure. If you are renting this property, the new property owner may either give you a new lease or rental agreement or provide you with a 60-day eviction notice. However, other laws may prohibit an eviction in this circumstance or provide you with a longer notice before eviction. You may wish to contact a lawyer or your legal aid or housing counseling agency to discuss any rights you may have.”

FORECLOSURE AND RENT CONTROL
Some cities with rent control do not allow a new owner to evict you because of a foreclosure. Contact your local rent control office for more information:
FORECLOSURE AND SECTION 8

The new U.S. law giving renters 90 days notice also applies to Section 8 tenants. Other special rules apply if you receive Section 8. Contact your case worker or local Section 8 office immediately. Tell them about the foreclosure and discuss the terms of your housing contract. Learn more on Section 8

SECURITY DEPOSITS and FORECLOSURE

Your landlord must return your security deposit minus any lawful deductions, or transfer it to the new owner. If not, both the old and new owner are liable.

CASH FOR KEYS

In most cases, the new owner is the bank or lender that foreclosed on the property. They may offer you money to move out sooner than 90 days. This is called “Cash for Keys.” If you agree to this make sure the person has authority to make the offer and gives you the offer in writing. Not all tenants will receive a cash-for-keys offer

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PAYING RENT IN FORECLOSURE

Until the home is sold, you must continue to pay your monthly rent to your landlord. You owe rent to the new owner once the home is sold.

If the new owner wants you to move out, they must give you a 90-day written notice. If you don’t move out within 90 days, they can begin the eviction process. The new owner cannot cut off your utilities, change the locks or make other efforts to throw you out.

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