So we naturally deal
with a number of sellers who are seriously upside down in their investment
property. Rather than allow the property to be foreclosed on they opt to Short Sale. So what about the tenant?
Great question. Under
California law if the tenant has a lease and the property is sold or even
foreclosed on for that matter, the tenant has the right to stay until the lease
runs out as long as they continue to honor the terms of the lease. You can ask
them to leave but they don’t have to and the new owner must honor the terms of
the lease. If this is the case you want to make that fact perfectly clear to
the new buyer from the beginning. If not properly disclosed it could be a deal
killer at the last minute
Well what if they don’t
have a lease and are month to month. If they are month to month you will need
to give them proper notice. 30 days is if they have been there less than a
year, 60 days if more than a year. At the same time the renters are obligated
to honor the rental agreement just like the seller is obligated to honor the
terms of the agreement.
So when is the best time
to give the tenant their notice? We always suggest giving the tenant their
notice the day the property goes on the market. Now it usually takes 60 to 120
days to get the offer, negotiate the West Sacramento Short Sale and then close
the escrow. In giving them notice you are protected but at the same time you
can let the tenant know it will more than likely be 90-120 days before they
have to actually move and you can let them once the West Sacramento Short Sale is approved how
much time they will have to vacate.
It is important to be
upfront with the tenant. We need their cooperation to get the property sold and
let’s face it, if you are in foreclosure, they know it. When the notice of
default gets posted on the front door, it’s pretty hard to deny there is a
problem. Better for them to hear it from you early on than be surprised. Like
most situations, treat the tenant like you would like to be treated and all
goes well. Deceive and you reap what you sow
Is a West Sacramento Short Sale Right for Me?
To get a better idea of when
your West Sacramento home will be worth what you owe, log
in to www.shortsaleandloanmod.info for a free
estimate or call me today for a free no obligation consultation or for the
latest West Sacramento short sale information. Call me
today and sleep better tonight; you’ll be glad you did
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