Buyer’s rights in property sales

I am the tenant of a property that had a Hoa trustee sale and then a cancelled bank foreclosure in CA. Who gets the rent?

In the past year, the property I rent went through HOA tforeclosure. Within months, a bank foreclosure was scheduled and rescheduled and then the rescheduled date was cancelled. A few days ago, the HOA sent a letter stating that I was to now pay them the rent or they would file a unlawful detainer. I wrote back and stated that they had a junior lien to the bank that would be satisfied when the property was sold at bank foreclosure, not ownership. I received a letter from their lawyer saying that I have to pay the HOA the rent; however, they were not going to file an illegal detainer at this time. Why not? Who owns this property? Who gets paid? I also read that the tenant, could pay the HOA homeowners fees in lieu of rent. Is this true?

Nathan’s Answer

You mention the sale date was cancelled. That means whoever has title still has title. If that is the HOA, rent would be due to them. They may be unsure of whether to proceed with eviction because it is uncertain how long they will be able to hold on to the property, but to avoid money damages or notice to terminate down the road, you may want to negotiate or have an attorney negotiate with the HOA.

Your rent to the HOA and the HOA's mortgage to the bank are on completely separate tracks. Also, keep in mind any new title owner will likely have to assume your lease with the HOA, meaning you will have to continue making payments to the new owner/s as well.

Finally, your lease agreement with the HOA controls.

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