House in foreclosure / active ta default status, can defaulted owner still demand rent and have power to evic?

Question

We are renting a house from a woman who is or was the owner, we had a visit from the bank just over a month ago looking for the owner, she told them she lived in the house when she was renting out to us. We were told she was not supposed to be renting out the house till she had been in it for so many years.

A friend looked up the house on a real estate computer and found that the house went into active default back in June.

We have been told by realistate friends that we probably don't have to pay the woman rent because legally we are not supposed to. I have looked up some stuff on the net and everything says as long as the title is still in her name she is owner and we pay or can be evicted by her. At the same time we don't want to give her rent if we are not supposed to and she is scamming us out of cash.

if house is in foreclosure, and active default status do we still pay her rent? I am thinking that she still can demand rent and has power to evict us till the title is in someone else's name and the foreclosure is totally over with. Can anyone give me some insight? I live in California.

Answer 1

In California and most other states, if you are renting, you have to pay the rent as long as the owner owns the house. She can still evict you if you do not.  In California it takes a minimun of 3 months and 21 days for a foreclsoure to take place.  The day after the forecloure, there is a new owner of the property and your lease is cancelled. The new owner MIGHT evict you or let you continue to rent.  You would need to contact them to see what they want to do with the house.

Answer 2

I'm not a lawyer, so this isn't legal advice. However....

Your research is correct: If she is the owner of the property and you have a valid lease, then you owe her rent. Period.

The question is: Is the property still in her name? You can check that at any time with your city or county government. Or get a title or settlement company to check.

The next question is: Once the foreclosure occurs (that is, once someone else buys it, or ownership is transferred to the lender), what do you do? Consult a lawyer now to find out.

Hope that helps. (And congratulations for doing your own research and not taking someone else's word!)

Answer 3

The owner still owns that property and you as a renter have to pay her/him. The foreclosure is not your issue it is the owners responsibility since you are not buying that house.