Tenants' rights in a foreclosure

Your basic rights as a tenant

• You do not need to move immediately.
  • Even if your landlord’s home is foreclosed, you usually get a notice giving you at least 90 days before you have to move.
• The new owner generally must honor existing rental agreements.
  • If you have a fixed-term lease (like a year), they generally must honor the lease.
    • If the new owner intends to move in, you will likely have to leave but have the right to 90 days’ notice.
  • If you have a month-to-month rental agreement, they can:
    • Offer you a new rental agreement, or
    • End your agreement but only after giving you at least 90 days’ notice.
  • If you live in your home with the landlord who’s losing their home, the new owner can end your rental agreement. They must give you at least 90 days’ notice.
• You must get a written notice before you are asked to leave.
• The new owner cannot change your locks without a court order. It’s illegal.
  • To get an order to change the locks (evict you), the new owner must go through the court eviction process.
  • The new owner must also keep up their responsibilities as a landlord.
• The new owner must return your security deposit if the prior owner did not return it before the foreclosure.

⚠️ Keep paying your rent on time to the new owner or property manager.

• If you don’t pay you could be giving them a legal reason to evict you.
• Make sure you check that this new owner is the legal owner. There are scams by people pretending to be the new owner or property manager to take your money.
• If you don’t get a notice from the new owner, put the rent aside so you can pay it as soon as you get the notice.

Legal protections for tenants

Some California cities and counties have more laws that protect tenants from eviction. 

• Federal Law: Protecting Tenants at Foreclosure Act (PTFA)
  • 90 days’ notice to move if the property is foreclosed and sold.
  • You may be allowed to stay until the end of your lease, unless the new owner intends to move into the home. If that happens, you have the right to get 90 days’ notice.
• California Law
  • You have the right to a 90 days’ notice before the eviction can begin.
  • Under the Tenant Protection Act of 2019, you may have more protections depending on how long you’ve been a tenant and what kind of home you rent:
    • The new owner may not be able to evict you without “just case” (a foreclosure, by itself, is not “just cause”)
    • You may have the right to financial help to move (called “relocation assistance”), equal to one month’s rent.
    • Some exceptions:
      • Single family homes and condos if owned by an individual (and that individual served you with a notice of exemption)
      • You lived in the unit less than 12 months
      • The new owner is moving in to the home
      • There may be others so get help if you’re not sure.
  • Some cities and counties may have local tenant protections, letting you stay, giving you more time to move, or offering more help. For example:
    • In cities that require “just cause” for evictions, the foreclosure may not be enough.
    • Contact a tenant’s rights organization where you live to see if you can stay in your home. (Link opens in a new tab)

Steps to take if the home you rent is foreclosed

To find out if your home is in foreclosure:

• Record a Request for Notice form in your county recorder’s office (link opens in a new tab).
• This form asks that you be notified of any foreclosure proceedings. You will then receive a copy of the Notice of Default and Notice of Sale and know the status of the foreclosure. 
• You can buy a Request for Notice at stores that sell legal forms or get 1 from the customer service department of a title company.

If you know your home has been foreclosed:

1. Read the notices carefully.
   • Foreclosure and eviction notices will have deadlines. Note them right away.
2. Know who to pay rent to.
   • Usually, the new owner will take over rent collection. Ask in writing if unsure.
3. Ask about your lease.
   • If you have a fixed-term lease, show it to the new owner — they may have to honor it.
4. Start looking for a new place early.
   • Even with 90 days’ notice, finding a new home can take time.
5. Get help if needed.
   • Call your local legal aid office or tenants’ rights agency. They can explain your rights and help with eviction notices. (Links open in a new tab)

• Don’t ignore notices. Respond or get help immediately.
• Document everything. Keep copies of notices, payments, and communications.
• Know your local resources. Some cities in California have extra protections for tenants in foreclosure.

💬 Help for tenants in foreclosed properties

There are resources for tenants to get more information about their rights.

• Read Action Guide for California Tenants in Foreclosure Situations
• Call the Tenant Foreclosure Hotline at 1-888-495-8020.

If you need additional information, talk to a lawyer.