Thread: Foreclosure on My Apartment

My question involves a foreclosure in the State of: California

I've received different opinions and advice from people who claim to have the answers. To begin, I received a "NOTICE OF TRUSTEE'S SALE" on the front door of my apartment door. It reads as follows:

Mr and Mrs Jackson, Husband and Wife, as Trustor, Washington Mutual Bank, FA, as Beneficiary will sell at public auction sale to the highest bidder for cash, cashier’s check drawn by a state or national bank, a cashier’s check drawn by a state or federal credit union, or a cashier’s check drawn by a state or federal savings and loan association, savings association, or savings bank specified in section 5102 of the Financial Code and authorized to do business in this state. Sale will be held by the duly appointed trustee as shown below, of all right, title, and interest conveyed to and now held by the trustee in the hereinafter described property under and pursuant to the Deed of Trust. The sale will be made, but without covenant or warranty, expressed or implied, regarding title, possession, or encumbrances, to pay the remaining principal sum of the note(s) secured by the Deed of Trust, interest thereon, estimated fees, charges and expenses of the Trustee for the total amount (at the time of the initial publication of the Notice of Sale) reasonably estimated to be set forth below. The amount may be greater on the day of sale.

Basically, I'm trying my best to retain my resident without being evicted because it's near impossible to find another place to live for me. I make my rental payments to a company (The Lapham Company) that manages the couple's property (the couple who can't pay the mortgage and thus the foreclosure). The rental co. wants me to continue to keep making payments in "good standing" so if there's a new owner, he my decide to renew my rental contract, or else he/she may evict me. Is this true?

I told this to my brother who has friends in real estate and he told me that it's illegal. He said that if the bank is putting the property for sale due to the foreclosure, it's because payments have not been made. This means my money has been going into the pockets of the management and nobody knows for sure if the former owner is getting any of it. If there is even a slight chance the new buyer is planning to use it as a rental I still have made payments going into the managements pocket and that is illegal. The property would've not gone into foreclosure if my payment was used to make the payment on the property. Basically I am giving money to the wrong person and in the end I can only hope the new purchaser plans to use it as a rental. The meantime I am just giving the management who is not the property owner money that does not belong to. Since the management is not the owner of the property, why should I have to pay them a penny? They can't do anything, only the bank can do that, right? and eventually they will evict me so they can sell the property. Banks can't have the place occupied if it is in foreclosure. Imagine the new buyer who wants to check out the place with all your belongings in it. If I wait, it could be bad news. They will force me out of your place and I can't get back in. My brother told me that he knows a person who is in the real estate business and he told me they force people out of their property when in foreclosure. This means that I may end up coming home and I can't get inside. I don't think I'm in a good position to just wait and make payments to someone who don't even own the property, right? My brother suggested that I ask the bank what is the balance, what are the payment terms, and how many months behind on payment. This way I can decide if the bank is willing to let me take over the payments. Since I already live there, made payments and never late, I may qualify. The bank would rather sell to you then to loose out by auctioning the property. The problem with this is the property is estimated at $598.863.68 and consists of multiple units (4 apartment units including mine which is a stand alone unit). I doubt that the bank will make an offer where I only make payments for my unit when the property as a whole consists of multiple units. Anyways, the property is being auctioned off on the 23rd of this month.

Any advice on how to keep my place, or what should I do that is best for me? Thanks in advance!

Sincerely,
Grapesicle