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San Jose Foreclosure Help: How Does Foreclosure Affect Tenants?

Especially after the events of the past two years, many Americans are struggling to meet their mortgage obligations and are seeking foreclosure help.

In fact, over two million homeowners are still in forbearance on their mortgage on top of another 1.8 million who are delinquent in paying their mortgages by 90 days or more.

This means that there is a potential wave of mass foreclosures just waiting to hit the US, on the coattails of the COVID-19 pandemic.

This is especially true in California, which boasts the second-highest average home price in the country and something that definitely affects the San Jose area. It has become harder than ever for homeowners to maintain this expense, and it can have drastic consequences when things go wrong.

Unfortunately, tenants who rent a residential space in California are some of the hardest-hit victims in this crisis. Due to no fault of their own, they face the potential of losing their home.

What is Foreclosure?

Foreclosures can often be confusing, but it’s important for both property owners and renters in San Jose to understand this term and the implications that come with it.

When you buy a property, you agree on mortgage terms with the lender. In these terms, you agree to allow the lender to sell the property to recoup their investment, should you fail to repay what you owe.

This is what is known as a foreclosure. Unfortunately, it can grow more complicated when tenants are involved.

How Does Foreclosure Affect Tenants?

For tenants renting a residential space in California, there is some help when foreclosure comes into play.

California state law helps to protect tenants, with stipulations like no automatic termination of the rental agreement, or a mandatory 90 day written notice of termination, even for month-to-month tenants.

However, despite this state-mandated help, the process and the legal procedures that may follow can be difficult for a layperson to navigate. Additionally, tenants may not have a full understanding of their rights and entitlements under the law in the first place.

This is where a foreclosure lawyer from the San Jose area comes into play.

Of course, they can assist homeowners with working out the means to keep possession of their homes. A lesser-known fact is that these attorneys can help tenants understand their rights, as well.

These attorneys will work to mitigate the damage to tenants that are left in the wake of their landlord’s foreclosure. They can help you understand state and federal law, as well as programs that may be available to help in your area.

Help With Foreclosure in San Jose

The concept of foreclosure as a tenant is scary, but luckily, you’re not in it alone.

There is a qualified team of attorneys standing by near San Jose with 50 years of combined experience in real estate and foreclosure law. They are ready to provide top-notch foreclosure advice and legal help throughout this confusing time.

For more information or to speak with an attorney to get expert foreclosure tenants’ advice, contact us today.