28/01/09
You're paying your bills, but your landlord isn't. And you're the one holding the eviction notice.
This is a familiar scenario for thousands of renters nationwide who have become the unintended victims of foreclosures. Banks are booting good tenants onto the streets with little or no notice after seizing a property from a delinquent owner, ignoring tenant leases.In the most troubling cases, some families are forced into shelters for temporary housing because they have little savings to cover moving costs, the first month's rent at another apartment and a security deposit.
Fannie Mae pledged to change that with its new renter policy starting this month. The plan allows renters living in foreclosed properties to sign new leases with Fannie while the property is up for sale, or gives the tenants money to relocate. The amount of move-out assistance varies by state and property.Fannie estimates that about 4,000 tenants live in its foreclosed properties and would be eligible for the plan.
Unfortunately, that's just a fraction of renters facing the consequences of a landlord's foreclosure. Renters in large complexes are probably safe because delinquencies on multifamily loans are still very low. But 15 million renters, or about 40 percent of all renters, live in single-family homes, many of which are owned by mom-and-pop investor landlords. That is where the risk lies.
What should you do if you receive a foreclosure or eviction notice?
"Don't panic or stick your head in the sand. Neither action will be helpful," said Robert Baker, education coordinator at Housing and Credit Counseling Inc. in Kansas.
Call the sheriff's office first, Baker said. Find out how long the foreclosure process takes. Is it 60 days or 90 days? Then you'll have a timeline to work with, and time to prepare for the worst-case scenario.Next, get on the Internet. Find out the rental laws in your state. Some states recently passed legislation giving renters a grace period of 30 days or longer to stay in a property after it's been sold in foreclosure.
The U.S. Department of Housing and Urban Development outlines tenant rights by state on its Web site, www.hud.gov.
The lender's name or its lawyer will be on the eviction notice. Contact either one to say that you live in the property. Find out what your options are. Will the lender let you sign a new lease, or is the bank offering some cash assistance for moving out? Don't let the lender bully you into moving out sooner than is allowed by law.If you're nervous negotiating with the lender on your own, contact a local nonprofit housing-counseling agency for help. HUD's Web site lists agencies by state, or you can call its toll-free number, 1-800-569-4287.
Tenant-rights lawyers are rare and can be expensive, Baker said. And legal-aid offices across the country face severe budget cuts.You also can do a little digging into your landlord's financial situation if you're worried about a possible foreclosure. Go to the county courthouse or its Web site and do a rudimentary background check on your landlord.
Also, call your local Better Business Bureau to see if any complaints have been filed against your landlord. That can be a clue that something is wrong.A landlord suddenly failing to make repairs could be another warning sign.About 15 million renters, or 40 percent of the total, live in single-family houses, many of which are owned by mom-and-pop investor landlords.
source:http://www.columbusdispatch.com/live
