Notice of Sale For Residents of Property Subject to Foreclosure Sale – New for April 25, 2013!
An owner of a residential income property is in default on a loan secured by a trust deed encumbering the property. While the owner is in negotiations with the lender to modify the loan’s payment schedule and cure the default, the owner enters into a two-year lease agreement with a tenant, who takes possession of the property.
After the residential tenant takes possession, negotiations with the lender break down. The lender records a notice of default (NOD) to commence a trustee’s foreclosure sale of the property.
More than 90 days later, a Notice of Sale is posted on the residential property in foreclosure. The Notice of Sale is posted at the same time and in the same manner as the Notice of Trustee’s Sale (NOTS). [See first tuesday Form 474-1 and 474]
Related reading:
The Notice of Sale notifies any occupant of the premises, including tenants, of the potential effect of a trustee’s sale on the tenants’ right of possession and underlying rental or lease agreement.
In addition to being posted, this notice is also mailed to the occupant in possession of the property in foreclosure.
The Notice of Sale posted with the notice of trustee’s sale on the residential property in foreclosure reads:
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 90-day eviction notice. You may have a right to stay in your home for longer than 90 days. If you have a fixed-term lease, the new owner must honor the lease unless the new owner will occupy the property as a primary residence or in other limited circumstances. Also, in some cases and in some cities with a “just cause for eviction” law, you may not have to move at all. All right and obligations under your lease or tenancy, including your obligation to pay rent, will continue after the foreclosure sale. You may wish to contact a lawyer or your local legal aid office or housing counseling agency to discuss any rights you may have.
The use of this notice is required effective April 25, 2013. The notice contains Spanish, Chinese, Tagalog, Vietnamese and Korean translations supplied by the Department of Consumer Affairs (DCA).
Related reading:
Editor’s note: Current first tuesday students and purchasers of first tuesday Forms-on-CD 4.3 may download a FREE copy of the updated Notice of Sale [See first tuesday Form 474-1] and digitally fill, print and save it. Log in to your student homepage at www.firsttuesday.us using your eight-digit Department of Real Estate (DRE) license number or T-number and click, “first tuesday Forms Downloads and Updates.”
