California Tenant Rights During Foreclosure

California Tenant Defense System | Justice Foundation

When the property you rent is foreclosed upon, you don’t automatically lose your housing. Federal and California law provide tenants in foreclosed properties with specific protections — including the right to remain through the end of your lease and, in some cases, a right to 90 days notice even without a lease. Knowing these rights before a new owner arrives at your door is essential.

The Protecting Tenants at Foreclosure Act (PTFA)

Federal law — the Protecting Tenants at Foreclosure Act, permanently enacted in 2018 — requires that any new owner of a foreclosed property honor existing leases through their term and provide at least 90 days notice before requiring a month-to-month tenant to vacate. This federal protection applies nationwide and cannot be waived.

California’s Additional Protections

California Civil Code Section 1161b extends these protections further. A tenant with a fixed-term lease may remain through the end of the lease term regardless of the foreclosure, unless the purchaser intends to occupy the unit as their primary residence — in which case 90 days notice is still required. Month-to-month tenants are entitled to 90 days notice. Former owners who stay as tenants after foreclosure do not receive these protections — the law is specifically for bona fide tenants who were not the former owner.

What “Bona Fide Tenant” Means

The PTFA protections apply to “bona fide” tenants — meaning tenants who were not the former owner, whose lease was the result of an arm’s-length transaction, and whose rent is not substantially below market. If the former owner rented to a family member for nominal rent as a way to get eviction protections after the foreclosure, the protections may not apply. Legitimate tenants who entered their lease in the ordinary course before the foreclosure are fully protected.

Responding to a Post-Foreclosure Eviction Attempt

If a new owner attempts to evict you immediately after foreclosure without providing the required notice, you have strong defenses in any unlawful detainer proceeding. Assert your PTFA and California Civil Code 1161b rights in your Answer. The Justice Foundation kit includes foreclosure eviction defense templates and the specific requirements for each type of post-foreclosure tenancy situation.