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Residential Tenancies and Foreclosure; New Renter Protections

High instances of foreclosures on rental properties have spurred new protections for unsuspecting renters subject to eviction…

High instances of foreclosures on rental properties in Southern California have spurred new protections for unsuspecting renters subject to eviction. SB 1149 (Corbett), effective January 1, 2011, (1) changes the notice period of eviction requirements for post-foreclosure evictions (equal to the length of the tenancy, but not to exceed 30 days), (2) requires special notice for terminated tenancies within a year after foreclosure, (3) requires that any notices of the start of eviction proceedings served within one year of the foreclosure be served on the owner as well as any tenants, and (4) alters public access to unlawful detainer records. Corbett amends Code of Civil Procedure §§ 1161.2, 1166; adds § 1161(c) (Foreclosures).

Some Homeowners Associations (HOAs) are foreclosing on properties in an effort to collect unpaid assessments. After these HOAs take ownership of the properties as a result of foreclosure, they continue to rent the properties as a means to further collect on some of the outstanding debt. These HOAs must comply with these newly enacted renter protections.