Nativi v. Deutsche Bank National Trust Co., 223 Cal. App. 4th 261 (2014)

Citation: Nativi v. Deutsche Bank National Trust Co., 223 Cal. App. 4th 261 (2014)
Parent Document: Nativi v. Deutsche Bank National Trust Co., 223 Cal. App. 4th 261 (2014)
Jurisdiction: California (state)
Effective Date: 2014-01-23
Original Source: https://www.courtlistener.com/opinion/2650742/nativi-v-deutsche-bank-national... ↗

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the obligations of the national banks and federal savings associations (collectively, banks)
as the owner of a foreclosed property, the OCC's bulletin warned that "[i]n acquiring title
to foreclosed properties, banks assume the primary responsibilities of an owner, including
. . . serving as a landlord for rental properties." (Ibid.) The bulletin stated: "The
Protecting Tenants at Foreclosure Act of 2009 provides tenants with protections from
eviction as a result of foreclosure on the properties they are renting." (Ibid.) It advised:
"When a bank takes title to a house after foreclosure, it must honor any exiting rental
agreement with a bona fide tenant and must provide 90 days' notice to the tenant prior to
eviction whether or not the tenant has a rental agreement." (Ibid.)
       In early 2013, the FDIC provided guidance to assuming institutions regarding the
"cash for keys" program. (FDIC, RSAM Guidance 2013-G001, Jan. 7, 2013
<http://www.fdic.gov/bank/individual/failed/lossshare/RSAM_Guidance-2013-
G001_Cash_For_Keys.pdf> [as of Aug. 23, 2013].) It counseled that bona fide leases are
protected under the PTFA: "For tenants under a lease who are current on their rental
obligations, PTFA prohibits an eviction prior to the end of their lease terms -- the lease
survives foreclosure. The new owner must fulfill the landlords['] responsibilities under
the lease, but he is under no legal obligation to renew or extend the lease. There is an
exception to the lease protection: if the new owner intends to occupy the rental property
as his primary residence, the new owner can break the lease, but the tenant must be given
90 days from the eviction notice date to vacate the property."
5. Construction of the PTFA
       No one disputes that the PTFA mandates that, at a minimum, an immediate
successor in interest in foreclosed property give 90-days notice to vacate to bona fide
tenants of residential property. In light of the legislative history of the PTFA and the
Act's consistent administrative construction, it also appears unmistakable that Congress
intended a bona fide lease to survive foreclosure through the end of the lease term by

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