How will strategic default affect my California renters

[Justin thyme]

Hi,
My first post. Next month, I am going to do a strategic default on my California rental house. I am concerned that the renters will be harassed or threatened with a move before their lease is up (Jul 2013). I have a property manager and wonder when I should tell them I am no longer making the mortgage payment. What would the chances be of the lease staying in effect through the foreclosure process?
thanks for your advice!

Facts: purchased in 2000. Cash out refinance in 2006 (recourse loan). But it's a single family home and I know chances are slim for a deficiency judgement.
Underwater by 120K

[Cat Damiano]

Hi,
My first post. Next month, I am going to do a strategic default on my California rental house. I am concerned that the renters will be harassed or threatened with a move before their lease is up (Jul 2013). I have a property manager and wonder when I should tell them I am no longer making the mortgage payment. What would the chances be of the lease staying in effect through the foreclosure process?
thanks for your advice!

Facts: purchased in 2000. Cash out refinance in 2006 (recourse loan). But it's a single family home and I know chances are slim for a deficiency judgement.
Underwater by 120K

Welcome to the forum and thank you for joining............

Tenants have rights under PTAF, although it is set to expire on Dec. 31, 2012 but may be extended, we do not know yet.

Foreclosure - foreclosure_housing_selfhelp

Renters in Foreclosure: What Are Their Rights? | Nolo.com

Tenants Together*:*Action Guide for California Tenants in Foreclosure Situations

[Justin thyme]

Cat, Thank you for the links! Have you had any experience with one of the foreclosure help companies such as "Youwalkaway.com"? I was considering having an advocate through the process. I have already talked to a CPA and paid a lawyer for their advice. Does any one like you or Tom Eason (read his great posts) have a direction I might consider?
Thank you for your forum and the support!

[Cat Damiano]

Cat, Thank you for the links! Have you had any experience with one of the foreclosure help companies such as "Youwalkaway.com"? I was considering having an advocate through the process. I have already talked to a CPA and paid a lawyer for their advice. Does any one like you or Tom Eason (read his great posts) have a direction I might consider?
Thank you for your forum and the support!

Tom may chime in and offer advice from a landlord perspective in CA.


I do not personally have experience with them, but You Walk Away is one of our advertisers here on the forum, we have had many members that have used them for help over the years.

Nick Duncan from You Walk Away has posted his contact information in the following members thread;

Refied my VA loan once and looking to foreclose in CA

[TimothyB]

Welcome to the forum and thank you for joining............

Tenants have rights under PTAF, although it is set to expire on Dec. 31, 2012 but may be extended, we do not know yet.

Foreclosure - foreclosure_housing_selfhelp

Renters in Foreclosure: What Are Their Rights? | Nolo.com

Tenants Together : Action Guide for California Tenants in Foreclosure Situations

I thought PTFA was already extended to 2014? At least from what I read on this PDF off of OCC.gov :
www.occ.gov/publications/publications-by-type/comptrollers-handbook/ptfa.pdf

Quote from PDF:

The Protecting Tenants at Foreclosure Act protects tenants from eviction because of foreclosure on the properties they occupy. These provisions took effect on May 20, 2009, and originally were scheduled to expire on December 31, 2012. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) changed the expiration date to December 31, 2014.

Or am I wrong?

[Cat Damiano]

It appears that it was, thank you for pointing that out.