I just spoke with an experienced RE attorney in California
to inquire as to tenants’ rights in the event a home that was being rented were to go REO. Essentially, he said that if a rental home goes REO, the banks (as new owners) can evict the tenants because the foreclosure effectively wipes out all considerations such as leases, second mortgages, etc.
Assuming this is true, the only way I can see to mitigate
(probably not eliminate)that risk is to find out the amount of equity/debt the landlord has in the property.
Any thoughts from the group on the best way to obtain this information? Thanks.
