Any insights into evictions during Covid after I buy at trustee sale? Cash for keys still working?
HI @danielramos, I think the bigger issue starts in January unless legislators fix a few things. Are you in California?
Yes. I mainly want to focus on the Inland Empire.
Please see our post on SB1079. We had @ScottTalkov and @FinanceAttorney who are both attorneys weighing in on some challenges because of the way the rule was written. There’s a good chance you may never get your cash for keys back under the new rules if an eligible buyer ends up with the deal.
Evictions are interesting.
You have two competing interests, first the CDC national moratorium through 12/31/20.
What is probably more relevant though is what the legislature did in AB 3088 related to evictions in CA. There is too much to publish here in a comment about what AB 3088 did (I would be happy to share a write up with anyone by e-mail). Here is a VERY high level: a tenant experiencing a hardship between now and 1/31/21 is protected from an eviction so long as they provide a specific declaration of financial distress to their landlord. The tenants will be required to pay 25% of the total rents due under the lease by 1/31/21 with the remainder to be paid as early as 3/1/21.
This law does not prevent a cash for keys arrangement and that remains a viable strategy although a tenant who understands their rights may scoff because they can avoid being evicted currently under the law.
Separately, tenants have rights under SB 1079 to purchase a property at foreclosure auction so long as they can match the final auction bid and pay that amount within 45 days of foreclosure auction.
I’ll look that one up. AB 3088 wasn’t on my radar. gees.