American Morning
Foreclosure hits renters
From CNN's Deborah Feyerick
ROOSEVELT, New York (CNN) - When Lisa Brown moved into her rental house on Long Island last summer with her three daughters, she says, it felt like a new beginning.
After living in apartments, the spacious house got her attention immediately. "It was bigger than what I had lived in," she says. Brown was also won over by the neighborhood with its tidy homes and good school district. "I wanted to come here, and I wanted to see my kids graduate from this school district."
But they hardly had a chance. Instead, fighting back tears, she says, "I have to get out."
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I'm a renter because I've not yet felt ready to buy a house and would never sign for a mortgage that was more than I could afford, as I consider that irresponsible. I've spent the past 3 years trying to improve my credit and save for a down payment. I always pay at least twice the minimum payment on everything, never late on anything. Every bank has doubled my credit card interest rate in the last 6 months and cut my credit lines by average 50%. So much for my previously acceptable debt to credit ratio, and consequently so much for my credit score which has dropped nearly 100 points. I give up. If my landlord doesn't go into foreclosure I'll keep on paying for his retirement instead of my own and while I'm at it I might as well provide my hard earned tax dollars to help the irresponsible home owners stay in their houses.
This same thing happened to us. The owners of the townhouse we were renting went into foreclosure, and we got an eviction notice from the bank. We stopped paying rent immediately when the Foreclosure took effect, and the former owners tried to trick us into paying it for three months. Fortunately for us, no one bought the place at auction, so when the bank took possession, we were able to buy it from them at less than we had originally offered the former owners. They were still trying to convince us that the lease was still in effect, that we owed them rent, and continued to put phony eviction notices on the door up until a week after our mortgage was signed. The litigation for recovery of rent and security deposit is in progress. We were fortunate that we were able to turn the situation around. We were very lucky. Not everyone can do that, especially in this market and with the credit crisis as harsh as it is. Renters need more rights than they are given. I feel for this family and pray that they are able to achieve their original dreams for their future.
So, here’s the thing when I read this type of "news". It’s not that I don’t have compassion for her situation. I do. That said, a few comments on this story and her situation:
1) Is this really worldwide front page news? There’s nothing else going on more important than Lisa Brown needing to move? Really? I could have sworn I heard some rumors of unrest in the Middle East, wars in a couple countries and some sort of economic problem in the USA. But please, let’s put that all aside for Lisa Brown.
2) Beyond the security deposit which she certainly should try to recover, she is not out any money. She’s lived there a whopping 7 months and certainly seems accustomed to moving. It’s not like she’s some old lady who has lived in the same house for 30 years and is now forced to leave. So, the primary question I have is… how hard is it to find another place to rent??? Especially in this economy – I bet there are places right down the street.
3) She’s paying $1,900/month in rent. Obviously she has an income source – that’s more than most people’s mortgages. Again, Lisa Brown, you might just have to take a day of your life and suffer the inconvenience of having to MOVE! You might even look into buying a property if you can really afford $1,900/month in rent. You would actually be thousands of dollars ahead each year due to the tax benefits.
4) Who in their right mind pays a broker $1,900 as a commission to rent a place to live? I can see a landlord paying a commission to someone, but a tenant should have a virtually limitless supply of choices right now that certainly don’t require paying a commission.
5) The end of this story is what really sends me into orbit… “For now, though, she says she will adjust her dreams”. Was it really her dream to live in a rented house the rest of her life? If so, she needs to see a couple movies and dream a little bigger.
Sorry, this is a typical "non-news" story. Every one has to feel for the family....buy instead of rent next time and then make sure your mortgage company pays your taxes on time.
And Scott,
Since she works to make the money to pay the rent for the apartment that she rented by signing a lease she probably has a 401k that lost money as well.
Again...
So what!!...yea it is inconvenient but your not losing any money here just go down the road and rent another place. Better yet go buy a more modest home...WHO CARES!!
This happened to me, and the law is clearly on the landlord's side. My husband and I had to move our belongings into storage and move in with my mother to wait for an apartment to become available. We had just signed the lease 3 months before we were served with papers, so the landlord was clearly aware of what was happening. I'm livid to think of the wasted money effort I put into making that house my home. We're back on our feet now, but the move caused a financial pain that lingered for months.
I've noticed posts from people stating that "That's what you get when you rent". I'm offended by those comments. I've made a choice to rent, and do not feel that I should just quietly accept the cost of other's irresponsibilities.
A couple hundred bucks to move into a new place? When was the last time you rented an apartment? Where I live they want 2.5 months and a move in fee. Even if the rent was $200(which is unheard of in this area), that would be $500-600 dollars.
One other point on this...
It is not as simple as packing up and finding another rental. The eviction is recorded on the tenant's credit record as a forced eviction; as far as credit goes that is the same as being evicted for non-payment. And it is unlikely she can get a landlord reference out of this. Just trying to rent without a reference from your last landlord is hard enough; trying to do that with an eviction on your credit record is basically impossible.
Or for those rental owners reading this and saying "just find someone else". Would you rent to someone who has a forced eviction on their credit record from 30 days ago and can't provide you with a landlord reference?
This exact same thing happened to me in October 2007. I was devastated! I had been notified via mail that we had 10 days to move out. I called the number provided repeatedly to get answers and no one ever called back. Of course, I had no money for 1st months rent and deposit and needed more time. After the 10 days I was greeted by a person sent out to change the locks!!! I was in shock by the whole thing. I could not believe that I had been a faithful tenant for 9 years, made simple repairs and cared for the home as if it were mine.The worst part about it was because of my not so perfect credit I was not able to purchace a home..it didnt seem to matter that I paid high rent prices on time every month. Somehow....I dont understand that. Now, when I hear in the news that homeowners are getting saved from foreclosures or forclosure freezes...it makes me angry..what about the renters?? If for some reason I cant afford to pay my rent...who will bail me out? NO ONE!!
Jeez, I sure HOPE things CHANGE for the better for this woman.
At $1900.00 a month, she can't be hurting too bad. She should be able to find a decent place.
Some of you advising the tenant to just put on her "big girl pants" are MISSING THE POINT!!!
It is fraudulent of the landlord to knowingly take rent money owed him/her by contract, when he/she KNOWS that he/she will breach the rental agreement... the point is not that we should feel SORRY for the tenant! The landlord is a CROOK...
So your snide advise telling the tenant to "move on" sounds like tacit approval of this snaky landlord's actions...
if you don't own something, you don't just automatically own the RIGHTS to something. get a grip and find another place to squat for a nominal fee.
It's amazing how unsympathetic a lot of people here are towards renters. Renters rent, a lot of the time, because they can't buy a house. Even if you don't buy a house, you should be treated a little better than the way a number of thses cases were. Some people are taking advantage of a bad economic environment to prey on others.
Can't you people read? The woman is renting which often means she doesn't have money for a house. On top of that, she spent all of her money on a security deposit and broker fees. Where will she get the money for another deposit? Even apartments usually require something. Add moving costs on top of that and you find yourself out on the street.
Um, sorry. This sounds like an inconvenience but deal with it. A lot worse things are happening to people every day. This is the biggest non-story I have ever seen and it is on the front page of CNN.com!!!! Absolutely ridiculous.
My experience with renting is this: You pay on time. Then the owner decides to increase the rent..again..and again. Then you see the owner with a nice new car, a new boat. And wow! another rental property! Or on a whim, they decide they want somebody else in there that is dumb enough to pay three times the rent you are paying. Trust me, renters feel like fools. We are taken for granted. We are the ones that pay the "mortgages" so the owners don't have to. Talk about sense of entitlement. I'm quite tired of this rip off society. This poor woman has no time to check anything out – she just needs a stable place to live for herself and her children. And she needs a place right now. And yes, habitat for humanity would be good for her. And for the rest of us too! Yes, I'm white and wish her many blessings.
What a rotten thing to do to someone, being a homeowner and knowing that you can't pay your mortgage and still taking money from a renter. There ought to be laws that say you can't do that. Nothing will happen to the owners of the house, they will declare bankruptcy and the woman renting the house is just SOL. I hope the thousands of homeowners who are renting to tenants and letting the house foreclose get whats coming to them. Not only have the home owners screwed up their lives, they have really screwed up the tenants lives. Just shameful!!!!!
Well, if I'm not going to get my security deposit back, I most surely will have a most awesome going away party, and I certainly won't bother to hand the keys over (or clean up the puke/bong water/dog crap) before I leave. If the lease ceases to exist due to foreclosure, then the requirement that the rentor keep the property in good condition should cease to exist as well. If they're going to kick you to the curb anyways, why not just burn the place down on your way out?
Almost makes no sense. Banks don't want foreclosed properties on their books, so why flame the situation by removing resident renters and allow the properties to sit vacant?
I agree with a previous poster. Place the properties in receivership and allow renters to carry the duration of their lease, if not longer. Better still... allow the renters in good standing first dibs at buying the home – with a substantial tax credit or even some of that wonderful gov't bailout $ to assist them. They've already shown they have the ability and responsibility to pay on time.
I just hope we recover from this housing financial crisis before the credit crisis hits us in 2011.
I'd like to help this woman. How can I do so?
that's just too bad. pooooor renters. doesn't she realize that she's actually in the catbird seat? she can go ANYwhere. SHE has OPTIONS. it's the homeowner who we should be crying for. she can save her tears. renters are lucky these days, but when one rents, ones KNOWS they don't OWN the house and that 's just the chance they have to take. i don't even understand how this made a story.....
Just talked with my father-in-law who is a real-estate attorney. He says the landlord is probably in violation of the contract. Provided the renter hasn't violated his part of the contract, the landlord will have to repay any "refundable security deposit" and any rent during the time of default on the mortgage. Small claims court will usually settle this. But he says even if you win, good luck in actually collecting the money.
Renters can always find another place to rent. It may be an inconvience and even cost a little money but I'm not even sure why this is being discussed. Outside of a couple hundred bucks to move into a new place this lady is out nothing – Nota-. My 401k has lost more than she will lose in 5 seconds so I have very little sympathy in this case. Its not her fault that she has to move, but its not my fault either. Bring on a real story.
Enough already. She lost the security deposit. She might make up the money given that rental prices might have come down in the interim time. This is barely news worthy.
To the Patriot.You obviously don't live in NY. It takes in most cases two months rent and one months security just to move into an apartment, And God forbid you use a rental agent. that is another Months rent right there.
So although it's easy to say "just move" it's not that simple wehn you have to come up with Thousands of dollars just to move into a place.
In this ladies case that amounts to $7600.00
So please think about that before assuming an individual can just "come up with another deposit".
Yes, everyone can come up with so what's BUT where is the compassion? Have we all lost the sense of guilt for our fellow human being?
This is an IDOL world where we base ourselves on our actions and not those of God.
We are here to help each other and the day will come when some answers have to be given.
Take care dear lady and you are in our prayers here in Wisconsin.
Give Obama a call. Maybe he'll help out.
Responding to Levon, you are all heart. Some people cannot buy or do not want the hassle of home buying. As a renter, the laws need to be changed to honor agreements or contracts that are in place concerning rental property. Some consideration should be given to renters who pay on time and take care of the place. Not all renters trash a residence. Most do not. I can't tell you all of the stories that I have heard about people trashing homes when they are foreclosed on. Most do not, but a very small percentage do.
I guess renters need to smarter up. County records are available to the public. Every piece of property has its history recorded in the county government office of recorder/clerk.
Anyone who rents or buys a piece of property need to get off their duffs and protect themselves and their family. Foreclosures do not happen overnight. There is a series of documents recorded along the way. Our tax dollars pay for this administrative service and the knowledge of the employees who work in these offices. People need to step up and be responsible. And stop whining!
Eviction isn't as easy as you think. Don't you all watch Judge Mathis? Most states have a minimum time to vacate. It's usually 30-90 days after served OFFICIAL notice.
I really feel for this lady because the same thing happened to me in Desoto, Texas. I paid my rent on the 1st of the month, the next day the house was auctioned off, and by day 4 I was notified to get out. I was devastated and I could not file charges against the landlord because the address he used as his address was the address where I lived.
@Margaret:
Estimates are that 40% of foreclosure evictions are renters rather than homeowners. Comparing the number of renter households (34.7 million) to the number of foreclosures (3.3 million last year), this is considerably more than a 1 in a million situation. That would mean that 1 in 27 renter households was evicted because of a foreclosure last year.
Disgusting to see so many people (owners) saying "Oh well, too bad" about renters. This smells like the same attitude most upper-class individuals have about the working class. Working class people (like me and most of you) should know better. Lack of compassion is spreading like a virus. Can't rebuild confidence on a foundation of selfishness and finger-pointing.
A lot of you people who are posting comments are absolutely vile! How can you nonchalantly tell her to buy a home if she can't fathom the horrible thing her landlord did to her? This dishonest landlord should be horsewhipped in the public square. And as for checking out the landlord, who, with a job and children has that kind of time. Thanks to the writer who gave the "rentalforclosure.com" website for checking on unscrupulous landlords, but there are many people who would never have thought of it before. We should have laws that protect citizens from this kind of abuse from those with money and power. Here's the difference between republicans and democrats. To a republican "freedom" means freedom to tyrannize. To a democrat it means freedom from tryanny.
I live in a neighborhood full of forclosed and HUD homes. The Mexican family next to me were forclosed on when the father, who lived in Texas, borrowed $20,000 on the house and then the mom and kids could no longer make the payments. The mother told me he was abusive and she made him leave several years ago. Then the house right across the street was forclosed on and that Mexican family had to leave. When I looked up that house on County Website, the history of owners starting from 1999 were all Mexicans. The house started out selling at $98,000 then, and every year it was flipped to another Mexican it went up another $30,000. Then HUD bought it from the bank and sold it to an LLC for $110,00 who then sold it to a private citizen for $199,000. I am totally clueless as to the goings on in the real estate market now except I'm sure there's all kinds of money laundering, illegal aliens, and who knows what involved.
I think that the landlords should be charged with a crime, theft by deception. And the lender should be the one to press charges; they were not getting thier payments while the "owner" of the property pockets the money that should have gone to the mortgage lender each month. Mortgage lenders will have to start adding stipulations to their lending agreements to address this issue.
There are some pretty cruel people making comments here; don't you think if everyone could own a home they would?? The point is, the renter entered onto a contract, and the contract works both ways; it is not the renters fault that the owner absconds with the rent and doesn't pay his or her own mortgage. How about blaming that person for being an owner/investor. If you own, and can't afford to pay your mortgage on an investment property, you should be living in it yourself and not buying another property to live in, or rent elsewhere. The banks are outrageous for not giving these renters who can prove they have paid their rent, at least 3 months notice to find another home. To put someone who is legal, hard working and up to date on rent on the street is about as bad as what just happened at AIG, outrageous behavior of the banks.
Doesn't anyone ever talk to an attorney? Her issue is a common one for renters and likely could have been handled prior to executing the lease. Lawyers may have bad reps, but this is the kind of issue that they identify and help renters address. The same thing could be said with respect to one sided mortgages.
This is where I really have an issue with the bailouts and all the money the government is giving away. There is nothing for the people who like this woman are the final victims. Governemtn should put aside a few million to help people like this...not a handout, but a bailout!
I am disabled and because of tax and insurance increases here in Florida we could not keep up with the mortgage (PITI) payments. We lost our home to a short sale. Which put us into the rental market. What most folks don't do before renting is perusing the court records on properties they may want to rent. Look to see if there is a lis pendens filed. That's the first legal step toward foreclosure. Here in Florida we can search on line which makes the search easy. Check for lis pendens each month if you do rent. You will at least have a heads up that owner isn't paying the mortgage.
I say, kick all the renters out ! ! ! Let AIG have the money, they need it.
This is a simple game that these folks are playing. It's a unjust fight against honest hard working people. This country was built on the backs of the mom and pop stores and farms. Why should we get anything back.? I am a Vietnam Vet ( disabled ) When my country called, I answered as did a lot of other people. Now, if we ask for anything, it takes years to get an answer. I know of 4 families that have been evicted from apartments because the owners didn't pay the morgages. Ask yourself, how can these same people drive a Caddy or Lexus ? Simple, they just kept the money, to hell with everyone else.
This junk really makes me mad, at our house, we struggle to maker ends meet.
I guess I had better change the subject of get off this thing. My blood pressure is at the boiling point.
Tenant eviction isn't that easy. Don't you all watch Judge Mathis? As stated earlier, there is a minimum time in each state to vacate the property. Usually 30-90 days... Harder to evict someone than you think.
Are you guys kidding me? Think for one minute if you were packing up your kids stuff today, but not able to tell them what school they will go to, if they will see their friends again, where they will sleep in two months, and where she is going to get a ton of extra money – in this economy. Not everyone can afford to buy, and for someone who can't she did a heck of a job providing for her family.
She is a human being, a mother, an employee, a taxpayer, and a citizen. I know that legally she has no rights here, but to the person who said about her security deposit "Maybe she wasn't careful about her paperwork", WHAT? Why on earth would you assume that? I'm white, but I wonder if you would have said that if it was a 45 year old white businessman with his wife and two kids.
Regardless – things are really bad, for a lot of people, and if you do nothing else, have a place in your heart for them. It's what good people do.
First, to all those people who wrote that this woman (and all renters) should just buy a house and not rent if they don't like the end result. YOU ARE IDIOTS!!!! Have you been living on this planet the last few months? You do realize that a good portion of the current economic crisis we are ALL facing has to do with the banks making shading loans to unqualified buyers. Some people can't (and may never be able to) buy a house due to their financial situation. I've lived in apartments my whole life and still rent today. I'd like to buy, but my income isn't enough to sustain a mortgage payment. Although, I was tempted when the housing market was all-a-flutter with sub-prime loans, 100% financing, and special incentives for first-time buyers and low income buyers. However, I came to my senses and told myself that if I couldn't buy a home the regular way, getting one by trickery or sleight of hand wasn't the way to do it because it would come back to bite me. And so it was with many others who did buy a home when they shouldn't have. Not that I excuse their lack of judgment, but some people were swayed by the lure of being able to own. BAD IDEA when it really was out their reach. In any event, just because I can't own (or don't want to own) doesn't make me some sort of second class citizen devoid of any rights.
Which brings me back to the matter at hand. Renters (either by choice or by circumstances) should have rights whether they rent an apartment or a house. And for those owners who have said "get over it," and "if she doesn't own, she has no say," I'll put money on it that you are all heartless, money-grubbing, insenstive, imbecilic, cretins (especially Marty G). I hope someone comes knocking on your door one day and tells you (or one of your family members) to get out and see how you like it... especially if you're not the reason.
Look, we all have to be reasonable here. There are plenty of [other] victims of this economic downturn that but for the acts of someone else might not have been affected. This woman was a VICTIM and not of her own doing. Everyone seems to be worried about helping those homeowners (many of whom got into their situation because they bought when they couldn't afford it) facing foreclosure to find a way for them to keep their house. What about the renters? And not only those that are losing their home because the "owner" went into foreclosure, but those who lost their job and can't make it on just unemployment benefits and now find themselves unable to pay their rent and other bills. Are they (am I) (are you) less worthy of some sort of "bailout" or "helping hand" because we don't own? People, where is your humanity? We're all in this together.
CONSIDERING WE ARE BAILING OUT THE BANKS THERE SHOULD BE A GOVERNMENT ENFORCED HAULT ON FORECLOSURES ACCROSS THE BOARD. THEY ARE NOT MISSING ANY MONEY SINCE THEY ARE TRATING THEMSELVES TO FREE $$ FROM THE GOVT.
"LH March 24th, 2009 4:45 pm ET – I guess renters will expect a bailout now as well."
OMG..are you serious? What did this woman do wrong? NOTHING!!!! Some crooked owner STOLE her money. If you enter into a contract with someone and it is broken due to neglience and you lost money..wouldn't you be upset?
I am just trully amazed at the ignorance of some of the people here.
Lisa should move to New Jersey, they have laws on the books that state all tenants can keep their leases after foreclosure. That should be law in every state.
If the owner re-mortgaged after she signed her lease, she may have hope of staying in her house. If the landlord got a new mortgage after the date of the lease, then the lease is still valid.
I think she should sue the bank for not informing her of what was happening, as they knew the property was a rental, and they did not repossess the house one day, and sell it the next. THEY were her landlords at one point in this whole procedure, whether her money went to them or not, meaning, if she had fallen on a broken front step of this house after they took it in receivership, and she had been injured, THEY, as owners, would have had the responsibility if she sued them.
A big issue is that some states don't require notice of eviction to be given to renters when a home goes into for closure, which should be changed. I agree, the occupant has to move out when this happens. However, since the 'landlord' is breaking the lease (assuming early termination), which is a contract, the renter has rights to damages from the landlord. Now lets face it, if a homeowner is foreclosed on, then your security deposit is probably long gone, and you won't see a dime for prepaid rent or moving expenses. The lesson learned is to put damage deposits in escrow, and write to your congressman to change the laws so a proper notice of eviction is given to the renter.
WRITE A LETTER TO YOUR SENATORS AND CONGRESSMEN/WOMEN.
To Draft a New Housing Bill, giving Renters of Homes first Option
to Buy on any Foreclose Property they are currently renting / leasing.
We have enough Toxic Foreclosure / Bad Debt issues. We could
make it easier by working with the Renters, by getting them into the homes they are currently living in.
make a difference, and help the Nation survive the Current
Economic situations.
We are currently in the same mess as Lisa. Lucky for us the foreclosure notice was posted on our door, so we knew all the facts. My landlord owns 11 homes, and he is in foreclosure on all of them. He just filed for bankruptcy. My question is – where is all the rent money we all paid to him? I know he used some of it for a fishing trip to Alaska with his son in Sept. for 10 days. We have five months before we have to move. But, I am not going to give him anymore rent money, and I am sure he will try to evict me!! What a con artist I rented from.
To all those heartless, go for blood responses that I read, I have only one thing to say to you – I hope this situation never happens to you, because your thinking will be much different. Renters sometimes have little choices in life, we are doing the best we can. Try raising children when you are homeless!!
"San Francisco Resident March 24th, 2009 3:00 pm ET – So what. The ownership changed and the new owner can do what he/she likes. It’s not fair but grow up, what is?"
Okay..true she doesn't OWN the home..but she entered into a contract to make it her home. Just becuase I don't own my house doesn't give the owner (my landlord) the right to just come in anytime. The landlords have to ASK for permission to come into YOUR home even though they own it. NO ONE has the right to just barge into somewhere just because they make have ownership rights to it.
And as for it being fair..it is more of a matter of losing money and being punished for doing nothing. She did everything right..paid on time, etc. and so way should she loose her hard earned money and time moving because some crooked owner pocketed the money instead of using it to pay the mortgage.
Obviously..there are still people out there (like you) who just don't care about others and aren't living in the "real world".
Wow! Lots of venom and hate being raged here against renters! Sounds like Republicans to me!
Simple. SUE THE BROKER ! CASE CLOSED.
The broker had an obligation to know if the home was in foreclosure.
Lady, you need to run, don't walk, to the nearest Obama rally and tell him your story. The federal government will then make all your wildest dreams come true, free of charge, and send me the bill.
I am currently taking a real estate licensing course, and after reading this story on CNN, i just happened to also read this passage about leasing in our textbook: "A non-disturbance clause is a mortgage clause that states the mortgagee [the lender] agrees not to terminate the tenancies of lessees [tenants] who pay their rent in the event the mortgagee forecloses on the mortgagor-lessor's [owner, borrower] building".
Does this lady know if there was a non-disturbance clause in her lease?
This could change her rights significantly....
I guess renters will expect a bailout now as well.
Another bleeding heart story which shows a 1 in a million situation.
How about a story about the owners who get their property trashed by renters and are left to fix at their own cost. That situation happens ALOT more then this situation. Oh yea, SHE’S A RENTER. If she want’s to have a say then she should buy a place.
This happens all the time, regardless of the economic situation of home owners. 15 years ago the owner of a house we were renting told us they were selling and were not renewing our lease. We had to move. Fortunately for us were were able, with family help, to buy our own home. This case is not much different. An owner has a right to sell property it owns, even if it's a bank, and the new buyer as the right to occupy it if they wish. The only obligation I think the bank has in this case is to honor the current lease until it expires and give a month leeway after for the tenant to find a new place to live. What happened to Ms. Brown is the risk in renting a home. If she wanted a more secure living arrangement, she should go back to living in apartments, which are designed for renting.
Anyone who thinks that renters have the rights of ownership have no clue how the law works. Property owners and banks have a legal vested interest in each other, renters do not factor into the equation, nor should they. Like it or not it's a business. If laws were changed to give renters the rights over owners and banks you would nolonger see rental property. If the property gets sold the new owners have the right to do with it as they wish. If the property gets forclosed the bank has the right to dow with it as they wish. Their two names are the only names on the contracts, the renters names are never on a property purchase contract, if they were then they wouldn't be renters.
There is something very unethical and illegal in these types of acts. Communities and states that do not have a law in place making this practice illegal with a mandatory jail need to have pass meaningful legislation that will discourage landlords from robbing their tenants. The law should also provide protection to the tenant and allow them to continue to reside at present location from a set amount of days until they have exhasuted the terms of their rental agreement and have found another home.
Why don't the states pass law offering the house to the renter first at the amount of rent they were paying. Then refinance the house at that rate for the renter. That way the bank is still getting their money and the house is out of foreclosure and the bank does not take a loss on the house. As long as the renter has a good credit standing, I see no problem with this. Just an idea.
If the loan was backed by fanni mae then the renters can stay until the lease is up, according to the article by CNN a couple of months ago. It is something new that came out.
She renting for God sakes! She's entitled to nothing unless she has put up a security deposit or pre-payment. In that case she's entitled to those reimbursments.
very simple solution
tell the landlord either cover the 6000 plus a couple of months
or she will total the house
I was in that position, once. We had paid on time and through a property management company. The house was forclosed on and we had 2 weeks to move. Luckily we found somewhere to move to. It is bad when you keep up your end of the contract, but the owner doesn't.
There's that mentality again. The same one that got us into this mess. To think that the owner is using the rent to pay the building mortgage is idiotic. Frankly, once the money passes hand, it is absolutely none of the renter's business what that money is used for. Too bad. You should have bought a house, you would have qualified for that loan a few years ago, thanks to Barney and Co. At least now you would have a chance at a bailout. Where's Obama for you now?
Unfortunately I am in this situation. I moved into this home in September of 2008. By January 2009 I received a letter with the " intent" to foreclose. The letter also stated that the home owners had not made a payment since the same month that I had moved in. I have paid these people close to 15K so far and they haven't paid one dime on the mortagage. With the housing market the way it is now, why hasn't there been some kind of law passed protecteing the renters. Some of these homeowner are perfectly capable of making these payments to the bank but are jumping on the shirt tails of the ones who are honestly in trouble. This is a more serious problem than what is being portrayed in the media. There needs to be more hard core laws for this kind of blatant lack of honesty. They are just scam artists and are legally allowed to do it at this point. Alot of families are moving to the streets because of these people being allowed to continue this. When are they going to protect the renter ???
"Later at some point " isn't helping renters now !
I disagree with the heartless jerks on this blog who say someone isn't entitled to remain in the house if it's sold or foreclosed or that if renters don't like it, they should buy their own house. What a crock of...
The law should be changed so that:
1) The renter is notified about any foreclosure proceedings as they occur.
2) If a house is foreclosed on or purchased the lease should be transferred into the name of the new owner/bank until the terms of the lease are expired. If the new owner doesn't like it, then too bad for them. A good renter shouldn't be penalized for making good on a good faith contract.
3) All security deposit should be paid back to the renter provided the property was left in good condition. If the bank forecloses, they should assume the cost of the security deposit. In fact, all security deposits should be placed in an interest baring escrow account in the first place to prevent this from happening.
Taking advantage of good people for your own personal gain. Shame on you all.
Maybe these days renters have to check into the ownership of a property before committing to renting! Many years ago I looked at a property to rent and then found out that it was also on the market for sale. Of course, the person trying to rent it to me didn't tell me it was for sale.
There needs to be a law requiring that renters be notified well in advance when their home is in the process of being foreclosed upon. If this is not met, it should be grounds for a suit against the landlord for all moving expenses, lost deposits, etc. This is ridiculous! A responsible person, wisely choosing to rent instead of buying a house that he/she couldn't afford, should not have to go through this.
The same thing happened to me and my family.
Know that It is not always a matter of choice to rent or purchase.
In my own case, when I first moved to the US, I did not have a green card, and had to rent, as it was not possible to get a mortgage due to my residency status.
I used to live in Germany, where much more stringent preconditions for mortgages have greatly restricted the ability of people to purchase a home (home ownership is just 42%). On the other hand, there are very strict tenant rights to protect people, as they slowly build their way up to having a big enough downpayment for a house, and the foreclosure rates are, naturally, far far lower.
This is fair.
Perhaps if a few more people had been prudent enought to rent, and not taken on mortgages that they could not afford, we would not be in the sorry mess we are today. We should have legislation to protect renters, who are often financially propping up speculative homeowners through their rent payments.
Where is all the stimulus and where are all the tax breaks for renters who are being screwed.
Renters pay taxes (except section 8 people). Why in the world should renters have to have pay taxes to keep people in their homes who cant pay their mortgage and then lose out just because their landlord is foreclosed on
With all the tax breaks for homeowners and people who lost their jobs...WHERE are the tax breaks the Democrats promised for people who had to use their 401k in this being evicted enviroment. Not one tax break for renters.
Another bleeding heart story which shows a 1 in a million situation.
How about a story about the owners who get their property trashed by renters and are left to fix at their own cost. That situation happens ALOT more then this situation. Oh yea, SHE'S A RENTER. If she want's to have a say then she should buy a place.
Mr. Mark A. Henry in Unionville. MO -- Did the same thing to me and my family.
I think many are confusing what the main problem is with Lisa Brown's plight. The landlord pocketed her rent and deposit while NOT making mortgage payments. THAT is the problem. It's not about renting vs. owning, it's about dishonesty vs. integrity. If I were renting, and the landlord was honest with me, I would have no problem with relocation. However, having children involved makes it particularly loathsome for a landlord to withold vital information such as pending foreclosure. I think landlords should be prosecuted for fraud in situations like this.
The laws need to change. If a landlord defaults on a mortgage then he/she should be obligated to the tenant to inform them of the situation instead of taking a cowards way out by processing an eviction notice from the bank. What happened to the tenants money? If a lease was signed then then landlord violated the contract. Why is it necessary for a tenant to give ample notice to a landlord for vacating the rental and there is no reciprocity. Another indication of our caring for our fellow man/woman.
I never thought I would live to see the day when our wonderful country is beginning to decay before our very eyes. Now it's either the haves or have nots. Time for a change!
Defining Fraud....that is how this will have to be handled.
Hmmm, having been told to move out because a landlord was selling the home has been my closest experience to this. Not that I find that in any way less stressful. I feel there should be some legal recourse if a landlord knowlingly rents with deposits within x days of foreclosure.
If someone took all your deposits and didn't pay them back, how is that any different from fraud? If you knowingly rent out a property that is in distress, and you do not disclose this to the renters, then you deserve to be prosecuted for fraud. How is it any different from the people who are selling falsely a property they know is in forclosure, as in a scam. The FBI should become involved is it was known that the landlord was losing the home in the first place. It's fraud.
Pardon me - meant to respond to MARTY G not Paul G!
Bummer, well I guess it's time to pack, hard times bring about unforseen consequences. There is always Section 8 housing, and link cards. Have fun, talk to ya later
New York has one the longer foreclosure periods in the country. When the foreclsoure action was started the sheriff would have posted a notice on the property which would have given the tenant a "heads-up" that something was wrong. She should have contacted the owner at that time, stopped paying rent and started looking for a new rental. The money saved in unpaid rent would have more than made up for any money lost to the security deposit. My guess is that she burried her head in the sand and now blames everyone else for her situation.
Pass a law that if a property is under foreclosure proceedings, full disclosure must be made to the renter before the contract is signed. If later it then goes into default, the "rentor" reimburses the "rentee" in full.
Anyway, those landlords taking the money knowing the property is in foreclosure are nothing less than common criminals. It is theft by deception. That is my take on it. Landlord be glad that I am not your judge. You would pay this back in full and immediately, or off to jail you go.
Was this a legal rental? Most rental apartments in private homes on Long Island are illegal. The landlords do not pay income tax on the rental fees, the brokers know the apartments are illegal but rent them anyway or tell buyers about the "income property", the residential streets look like parking lots and the county loses revenue only to raise property taxes for those of us who do own and pay our mortgages! Something to think about.
It just amazes me to read these comments that people think renters are below them or something. The point is this woman entered into a lease (a contract) and put out money that she has ultimately lost. Think about how you would feel? I myself am a renter. Personally I would never own a house. Don't want the hassle or the expense of taxes, insurance, repairs, etc. But I still consider it my home. It is where I sleep at night. How would you feel to have someone tell you that you have 30 days to move out?
Tougher laws need to be set for tenant protection. The owner should not have been legally allowed to rent the house with the house in foreclosure or it should be mandated that they inform you of the situation.
It just amazes me that there are still snobbish people out there who feel that renters are scum and feel oh well..tough luck for her. People rent for many different reasons but it doesn't give anyone the right to be able to walk all over them.
This happened to my husband I when we first moved to Florida over 20 years ago. About a month or so after we moved in, the owner finally came and told us that he had lost the house and we didn't have to pay rent anymore. We loved the house and called about buying it. It was too late, the bank said. We had a few months before we had to go, so we put the rent money aside so that we could get enough together to rent another house. At least the landlord told us up front. I wish the best for this young lady and her children.
Boo hoo too bad. Let's cry me a river. We all have bad times. If you the people of this country wasn't so in to worshipping the new prez and actually doing something for themselves most wouldn't be in such bad situations.
We are in the same situation. We have paid our rent each month for the past 2+ years and now we find ourselves looking for another place to live since we received a notice that the courts were going through with the foreclosure that the landlord swore he stopped back in June of 2008. Where has our rent money been going? Now we will be left out in the cold.
It isn't stealing, she isn't due her rent back...She paid rent to stay in the home and she did. She doesn't get that back just because the landlord didn't pay the mortgage. Why does everybody feel that she should get all her rent back, is she going to "unlive in the house" all those months? The only thing she is due is any forward paid rents - but then if she had paid forward, all she has to do is show that to a court and she isn't evicted.
As far as the security deposit, all she has to do is take the old landlord to small claims court (issue a demand) and so long as she did have a lease, she gets that back - pretty clear cut. No different than she would if she left the house of her own accord and wanted the security deposit back.
There are probably many logical and sound solutions to the issue.
What I've read a couple of time here....
"We're out $10,000"
No you are not. Rent is not an investment. It's gone every month, just like the groceries you buy and gas you burn...If you are counting the last several months of paid rent a lost investment, then you should be buying instead.
Now, the security deposit you paid is a separate issue, and should be chased via small claims. The moving expense to move in and out can also add up as well...and also can be chased via small claims.
Wow, some of you (especially Marty G) are pretty much terrible human beings. This whole "Renters have no say!" line is really ridiculous and untrue. I am paying my money in to something, I have a say. Renters don't live some place free, they aren't little kids living in their parents basement. They are adults, over the age of 18, who signed a legal contract and are paying money to live in a place. To imply they are somehow just passengers on the renter train is unethical and ridiculous.
This whole "Well you should just go buy a house" thing is utterly ridiculous as well. People just going to buy houses to buy houses (or from peer pressure from these kind of idiots) is what got us in this financial mess. For many people renting is far more financial feasible then strapping themselves to a 30 year mortgage.
In addition, thanks to our screwed up financial system, lack of controls and total lack of financial education at the public school level, a lot of people have such shaky credit now, they can't buy a home. Those people are now supposed to what...live in on the streets? According to Marty G, these people are apparently sub-human and don't deserve a stable place to live. Or should we continue to cram people with less than stellar credit in to sub-prime loans, that also helped us get in to the mess we are in now?
What about people who can't afford a down payment because they are fresh out of college, or the finances are tight right now? Are those people also sub-human and don't deserve a stable place to live. According to people like Marty G, if you don't own a home, you just don't matter. You must not pay taxes, or give to charities, or be a productive member of your community, because you don't own a home.
Wow some incredibly crazy commenters out there. I was recently a victim of this same situation. 8 months into a 1 year lease a notice shows on the door that the property was sold at auction – what? Come to find out the mortgage had not been paid for 4 months. 4 months of rent + deposit totaled $5,000 in money that my landlord walked away with. Not everyone can afford to buy, myself for instance, I am renting while I save up for a down payment – not everyone is stupid enough to get sucked into a 5 year ARM 100% financed mortgage, some of us believe it should be done the old fashioned way. The bank offered cash for keys, telling us if we were out in a month they would give us $2000. So we dipped into our savings to cover first last and deposit for a new place moved and received a check from the bank, now this month I get a tax form from the bank indicating I have to claim the $$ as taxable income – WTF – what about the fact that I shelled out after tax money from my savings so now I'm effectively getting taxed twice. Overall good renters are loosing out on this. At a minimum a landlord should be legally obligated to refund the security deposit, and notify the renter that the property is in forclosure
These owners are crooks. They usually call themselves mortgage brokers, they want to make a quick buck. They bought a house looking to turn it over quickly, that didn't happen so they rent it out knowing the house will be in foreclosure. It happened to me twice! I thought I was so careful the second time, I went to the courthouse made sure they had other houses, the house wasn't haven't problems... They had made renovations... They were current with their payments... I even told them about the prior foreclosure and they assured me this wasn't the case. They stopped paying the mortgage as soon as I moved in. These guys should go to jail. So what did I learn, get rid of anything that isn't necessary, explain to my children it is a blessing to have new friends and a new school.
Wow, some of you people are heartless. Not all renters are deadbeats. Some people have no choice but to rent. And I'm one of them. My ex-husband left me in such debt (that I'm working my butt off to pay) that i couldn't even buy a house. So I rent. And I'm a good renter and I pay on time and I pay all my other bills on time. Some people don't have the luxury of being able to buy their own home. It doesn't make them any less of a person than you.
If you should be coming down on anyone, you should be coming down on the POS owner who took this woman's money, for as along as she's been there, and never telling her the house was already in foreclosure...........
Must be great to be so freaking perfect like some of you seem to think you are....
I regret to say it, but our Goverment is failing us. They need a "bottom-up" policy rather than a "top-down". Right now we need our politicians to get to work and stop having "grandstanding committee hearings". Listen to Main Steet America or start to look for another job. Maybe at next election we should all vote "Anybody but" to show our disgust
Would this have even made the CNN website if the woman was white?
Well, reading over some of these comments – sounds like renters are just about lower than snake bellies as far as any consideration coming their way. I assume those types of comments were made by people owning rental houses. Well, I'm a renter too. And a taxpayer. I've had the good fortune to have a whole lot of great landlords in my life, but then, I'm an excellent renter. The only thing landlords REALLY care about is getting their rent on time. I'm assuming if this situation should ever occur to my landlord, he would do the right thing by me to ease my loss of a home (and yes, it may be YOUR property, but it's MY home); however, if he didn't, well, let's just say things wouldn't go all that smoothly for him either.
She should try to hire a lawyer pro bono. There may be a way the new owners can let her stay...
I am surprised at the mean-spirited comments I have just read...If she could have afforded to buy she would have...
I feel sympathy for the woman, but it still is not as bad a crisis as for the many homeowners who are squeezed by falling home equity, rising utilities and rising taxes. I am waiting for concern by CNN and others to the plight of the middleclass that is caught between a rock and a hard place but somehow making payments as they cut down every other expense, including prepared foods.
Rental housing with active renters that goes into foreclosure should automatically go into receivership so that the renters can continue to live in the property. The receiver would be charged with receiving the rents and maintaining the property pending the foreclosure sale. The receiver would be forbidden from terminating any lease pending the foreclosure sale, including month-to-month leases, except for good cause separate from the fact the property is being foreclosed upon and is in receivership. Any buyer at a foreclosure sale for such rental property should, in turn, have to assume the present leases until their expiration, subject to the same right to terminate for good cause aside from the foreclosure. If a lease would ordinarily have expired during receivership or within six months of the foreclosure sale purchase, an extension of the lease term would be implied for six months after the date of purchase except for the right to terminate for good cause separate from the foreclosure. Likewise, any rental agreement for a month-to-month term would be interpreted to be for an implied term of one year from the date of foreclosure sale purchase, with either party permitted to terminate the lease on 30 days' notice beginning six months after the date of purchase, subject to the right to terminate earlier for good cause separate from the foreclosure. I think this would cover most problems.
It'e always been this way. The feudal lords exploitaion of the masses goes on, even in our so-called civilized world. The laws favour the rich. The common person, the backbone of the world, is destroyed and swept away and forgotten immediately, while Britney Spears' underwear is constant news. A very sick, sick world.
What an impotent lot we, the people are!