Tenants get 90 days’ notice, or the rest of their lease, after a foreclosure
Cal. Code Civ. Proc. § 1161b(a)–(b)
In plain words
If you rent a home in California that is sold in foreclosure, the new owner generally must give you a 90-day written notice to quit. If you have a fixed-term lease signed before the sale, you can usually stay until the lease ends. Some exceptions apply, such as when the new owner will live there.
Who is protected
Tenants and subtenants renting a California home that is sold in foreclosure.
When it applies
- Only in California.
- Only after the foreclosure sale.
- Only if you rent the home.
What you can do
Ask in writing
Send the new owner a copy of your lease and proof of rent, and ask for the 90-day notice the law requires.
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Our California page explains the whole process step by step, with its sources and free local help.
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Honest limits
- It does not apply if you are the former owner, a close family member of the owner, or the lease was not at arm’s length.
- This is general education, not legal advice. Laws change and details depend on your papers and your court; check the current law or ask a lawyer or legal aid.
The law
- State lawTenant notice after foreclosure
Cal. Code Civ. Proc. § 1161b(a)–(b)
Exact part: (a)–(b)
What it says: Tenants must receive 90 days’ written notice to quit, and fixed-term tenants may stay to the end of the lease, with exceptions.
Read the official texthttps://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CCP§ionNum=1161b
Court cases
- Homeowner wonSame topicYvanova v. New Century Mortgage Corp.
Yvanova v. New Century Mortg. Corp., 62 Cal. 4th 919 (2016)
a borrower may bring a post-sale wrongful-foreclosure claim by alleging that the assignment to the foreclosing party was void
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
- Homeowner lostSame topicBFP v. Resolution Trust Corp.
BFP v. Resol. Tr. Corp., 511 U.S. 531 (1994)
the price received at a non-collusive foreclosure sale that complied with state law is reasonably equivalent value under the Bankruptcy Code
Related rights
Renters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightProtection from owing more after a trustee sale (anti-deficiency)
Cal. Code Civ. Proc. § 580d(a)
After a nonjudicial trustee sale in California, the lender cannot collect the difference between the sale price and what you owed. Separate rules also protect many purchase loans on homes of up to four units that the buyer lives in.
Read this rightRight to redeem after a court (judicial) foreclosure sale
Cal. Code Civ. Proc. § 729.030(a)–(b)
If your California home is sold through a court (judicial) foreclosure, you may be able to buy it back after the sale. The period is three months if the sale paid the whole debt, or one year if it did not. There is no redemption after a regular trustee (nonjudicial) sale.
Read this rightRight to leftover money (surplus) after a trustee sale
Cal. Civ. Code § 2924k(a)(4)
If a trustee sale brings in more than the loan, costs and junior liens, the rest goes to you, the former owner. The trustee pays the costs, the foreclosing loan and then junior liens first. You usually must file a claim with the trustee to get the money.
Read this right