There have been so many laws passed recently that it's getting pretty confusing. Something happened to us the other day though, that brought a recent California law into focus.
A young couple asked to see one of our rentals saying that they only had a week to move. There was a notice on the door giving them seven days to move out because the lender was foreclosing. The landlord / owner had dropped out of sight and would not return their phone calls pleading for help.
So not only do they have to move right away but they likely will not get their deposit back. These tenants had no idea the owner was not making his mortgage payments and that the house was sliding into default.
The Perata/Bass Mortgage Relief Bill went into effect on 8 July this year here in CA and is meant exactly for this type of situation so if you are a landlord (or a tenant), here are four major provisions of the bill (it applies only to loans made in the title above and all provisions went into effect on 8 Sept.):
1. lenders must contact owners IN ADVANCE to explore options to avoid foreclosure
2. tenants will get a notice once the notice of sale has been posted on a property
3. tenants now have 60 days rather than 30 before eviction
4. locals (our HOA?) can levy fines of up to $1,000 on the lender if they don't maintain a vacated property that has been foreclosed upon by fixing things within 30 days. That might include damage by trespassers or squatters for example.
If you are a tenant or a landlord you can take steps now to comply with this law.
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