(FL) Foreclosures Are Forcing Renters Out

[sabra]

Source: MyFoxOrlando

ORLANDO, Fla. (WOFL FOX 35) -- If you are a renter, you may think you are safe from the risks of foreclosure. Think again. Tenants are feeling the pinch of increased foreclosures among their landlords, resulting in unexpected evictions.

Ashleigh Cheney used to rent in Orlando's Regency Park. She planned to live there for at least a year, but sadly, she didn't make it two months before she was being forced out. "She said, 'You don't have to worry about it,' and I said, 'I have a six-year-old son. I am worried'," said Cheney, recalling a conversation with her property manager.

Even though she never paid her rent late, she was forced to leave and has no idea where her rent money went. She said that she didn't believe her money was going towards the owner's mortgage, because the condominium she was renting was being foreclosed upon.

Ashleigh isn't alone. People all over town are learning that their rental is being foreclosed upon.

...

In many cases, renters are also losing their security deposit, pet deposit and other upfront expenses.

Neither the bank, nor the property owner, has to inform renters that their home is in foreclosure, and the bank does not have to let you stay in the house once the ball is rolling. Renters usually find out when they are asked to vacate, and they usually get only a few weeks' notice.


Read more: http://www.myfoxorlando.com/myfox/pages/News/Detail?contentId=6224847&version=1&locale=EN-US&layoutCode=TSTY&pageId=3.2.1

[Jed Dilligan]

1. They should have laws protecting renters from new landlords

other than owner move-in, at least until their lease runs out.

[blue sky at night]

2. really makes a lot of sense...

to force folks out that are making the rent payments....fucking banks are the biggest criminals on the planet.

[Warpy]

5. The criminals are the property "owners" who are

walking away from their debt and pocketing the rent checks in the meantime.

All the banks know is that they haven't seen any money coming in from anyone.

The only recourse renters have is to sue the owners for their security deposit. In most cases, they're at the end of a long line of other people who are doing the same thing.

Eventually, banks are going to start honoring leases just to keep properties occupied instead of attracting vagrants, vandals and vermin. Right now, anyone who rents a condo or house from an owner who can't sell instead of a real estate outfit is taking a big chance.

[pokercat999]

12. It seems to me the bank would have to "honor" the lease

on the property for it's full term. If you buy a house that has a lease on it I thought you had to let the lease run its' term.

Any lawyers out there?

[Zorra]

7. "fucking banks are the biggest criminals on the planet"

Well, um, ok, let's think about this. Who are bigger criminals?
:freak:
Yep. You're right. Banks are the biggest ciminals

[On the Road]

13. That Was My Reaction, Too

Like calling a loan due at the exact point you know it will be impossible to meet.

I understand going by the book, but this I don't understand at all. And I don't see how a bank can force the issue "when the ball gets rolling" before they even foreclose on the house.

[fishnfla]

3. on the flip side, former apt renters are able to buy houses now

story i heard on npr

apartment complexes are the latest ones cut out by the housing madness

[FightingIrish]

4. Have you looked at the classified section lately?

I live in a small Oregon city where the economy is not totally in the toilet yet. Page after page of foreclosure notices make me want to cry. Each one of these lengthy lawyerspeak notices is a family tragedy.

[Popol Vuh]

6. I think here in California

Renters before being forced to leave through no fault of their own have to be given a certain amount of time. Several months, maybe six, if I remember correctly. And also given relocation money up to 5k.

[LeftyMom]

8. 30 days. It was 90, but that law expired without renewal.

An owner could reimburse some moving expenses or provide some other incentive for a faster move-out, but they're certainly not required to do so, and I haven't heard of many cases where that happens.

Unless there's a clause in the lease or a local ordinance that says otherwise, of course.

[flvegan]

9. The last paragraph is misleading.

In Florida, the renters are notified immediately. Service of Process is performed upon both the "unknown spouse/co-tenant" of the fee simple owner (if single) AND SoP is performed upon Tenants #1 and #2. SoP is performed at the property. Service is also performed at the property for Notices of Hearing. While neither the bank nor the property owner has to tell the renter, the court does. That statement in the article is misleading.

Also, "once the ball is rolling" I'll assume is the filing of the Lis Pendens. The bank has absolutely no say in who is staying in the house until the Certificate of Title is filed at the end of the lawsuit, at which time Eviction proceedings begin. From initial SoP, if done properly, the renters normally have roughly 6 months to find new digs and move.

Problem is, if the owner reinstates the loan, you may be breaking a lease if you move before the CT is filed. Were I to rent a house/condo from in the future, I'd want a clause in the Lease that stated that any pending foreclosure action on the owner would allow me to choose to terminate the lease at any time.

[Mika]

10. Good read here ..

Closing the 'Collapse Gap'
http://www.energybulletin.net/23259.html

Slide <9> One important element of collapse-preparedness is making sure that you don't need a functioning economy to keep a roof over your head. In the Soviet Union, all housing belonged to the government, which made it available directly to the people. Since all housing was also built by the government, it was only built in places that the government could service using public transportation. After the collapse, almost everyone managed to keep their place.

In the United States, very few people own their place of residence free and clear, and even they need an income to pay real estate taxes. People without an income face homelessness. When the economy collapses, very few people will continue to have an income, so homelessness will become rampant. Add to that the car-dependent nature of most suburbs, and what you will get is mass migrations of homeless people toward city centers.

-

Slide <10> Soviet public transportation was more or less all there was, but there was plenty of it. There were also a few private cars, but so few that gasoline rationing and shortages were mostly inconsequential. All of this public infrastructure was designed to be almost infinitely maintainable, and continued to run even as the rest of the economy collapsed.

The population of the United States is almost entirely car-dependent, and relies on markets that control oil import, refining, and distribution. They also rely on continuous public investment in road construction and repair. The cars themselves require a steady stream of imported parts, and are not designed to last very long. When these intricately interconnected systems stop functioning, much of the population will find itself stranded.

More at .. http://www.energybulletin.net/23259.html

[Joanne98]

11. And the landlords are trying to collect rent even after it's been foreclosed on.

Beware.