Tenants Caught in the Foreclosure Trap are not Aware of Their Rights
Tenants caught in the foreclosure trap are not aware of their rights. This has led to the passing of two laws to give them protection.
One of the victims is Crystal Bateman. Last October Bateman got an unpleasant shock seeing a notice stuck to the front door of her condo in Toeele in Utah. The unit was poised for immediate auction.
Across USA 40% of the properties facing foreclosure are under the occupation of tenants. Traditionally it has been fairly easy to kick them out according to a non-profit group – National Housing Law Project. David Rammler, an attorney who is in charge of government operations in Washington said he knew of one instance when a tenant, a woman, returned home to find her house empty stripped of all her personal belonging.
Two new legislations have been passed to help the renters. Protecting Tenants at Foreclosure Act took effect from 2009 May. It makes it compulsory for advance notice to be given to the renters. Also they will be allowed a grace period of ninety days to shift or to continue to stay till the expiry of the lease – whichever is longer.
The HB243 law that Rep Wayne Harper sponsored, mandates that the tenants have to be informed of these rights given by the federal government either by mail or post. It will also make them alert that they would have to continue paying rent. Both these laws will expire by the end of 2012.
Rammler said that until now “there is significant ignorance of the (federal) law, and there are a lot of entities involved in the real estate foreclosure business that wish the law did not exist and behave as it didn’t.
The worst affected are those with low income. It takes little time for them to be reduced to homelessness. In their case the changeover is faster.
Bateman’s lease was till June on a rent of $1,200 per month. Last October she found that Wells Fargo had become the owner of the condo. Thus when the landlord knocked for the rent she flatly refused. Next it was the turn of Wells Fargo to harangue her and terminate her lease. She then looked for help to Utah Housing Coalition. Talks allowed her to continue till 30th April by which time her new house was scheduled to be finished.
