My landlord's property is being foreclosed. Do we need to file a claim at his bankruptcy hearing to be entitled to our relocation assistance money?

Question Details:

Landlord gave verbal notice that we wouldd have to leave, but no date certain. Property under L.A. city rent stabilization. We are entitled to relocation assistance. Do we need to appear at landlord's bankruptcy hearing to collect from the bank (new owner)?

Asked 11/2/2009 under Real Estate | 417 View(s) | More Legal Topics

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Real Estate Law Answers

Madan Ahluwalia / Ahluwalia Law P. C. Answered 2 years ago | Contributor with 0 answers This attorney is licensed in California

You have same rights with the new bank or lender. US Trustee has to respect it. If you are entitled to relocation assistance money in the current lease, only then you will get it. You won't get any additional or different benefit (than the ones stated in the lease). Again, as Mr. Belli pointed out, all of this is applicable if LL filed BK. If not, the new LL will be the new owner who buys property at foreclosure auction.

Melvin C. Belli / The Belli Law Firm Answered 2 years ago | Contributor

First has your LL filed BK? If so that will probably stop the foreclosure until his lender goes to court and gets relief from the automatic bankruptcy stay. It can take them months to do this.

Secondly if the property is foreclosed on you don't have to leave if LA requites "Just Cause" for evictions, you simply have a new LL the bank. In any case you don't have to do anything unless you get a written notice from the new LL which probably will be the bank.

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