The following is an excerpt from the Los Angeles Housing Department memo on the rent stabilization act updated on December 17, 2008. Click here to find out if your rental is in foreclosure.
The Los Angeles City Council enacted the Foreclosure Eviction Ordinance on December 17, 2008. The Ordinance provides that banks or lenders who foreclose on or after December 17, 2008 on single family homes or new multi-family properties (those with a Certificate of Occupancy after October 1, 1978) cannot evict a tenant merely because they foreclosed on the property. They can only evict a tenant based on the twelve legal reasons permitted under the RSO.
What should I do if I receive an eviction notice from the bank or lender?
Tenants who receive an eviction notice because the building is entering foreclosure need to know that a foreclosure or sale of a building is not a lawful reason to evict tenants under the Los Angeles Municipal Code. If a tenant receives a Summons and Complaint for an Unlawful Detainer, time is of the essence! It is important that the tenant respond to the summons within 5 calendar days. For legal assistance after receiving an eviction notice, tenants should contact an attorney or seek assistance from a legal aid agency. Once a tenant receives a notice from a financial institution informing them of the foreclosure and change in ownership, tenants should make every effort to contact the financial institution and inquire about how to make rent payments. Tenants who are uncertain of who is the legal landlord should save their rent and be prepared to pay upon proper notice. For questions regarding evictions, please call the Los Angeles Rent Stabilization Hotline at (213) 808-8888 or (888) 557-RENT (557-7368).
It is important to note that this ONLY applies if your rental is located within the Los Angeles CITY limits.