Single mother of 8, pays rent on time, getting evicted....

[cprompt]

LAGUNA HILLS, California (CNN) -- Charles Nelson has paid about $30,000 in rent since moving into a spacious four-bedroom home in August. He was stunned when a real estate agent knocked on his door recently and said the home was in foreclosure.


Charles Nelson paid $30,000 in rent, yet he faces eviction because his landlord is getting foreclosed upon.

1 of 3 His landlord had not paid the mortgage since he moved in and the bank is now demanding the house back. Nelson will also lose his $7,700 security deposit.

When he confronted the landlord, he says, he was given a terse response: "That's none of your business."

"I said, 'I beg your pardon. It is my business. I mean, is somebody going to knock at the door and throw me out -- throw my family out, or what?' " he said. Watch renters lose out big time in foreclosure »

Nelson, the owner of PCH Auto Sales, lives in the upper-middle class enclave of Laguna Hills, south of Los Angeles, with his girlfriend and two sons from previous marriages.

More than 100 miles away in the working-class city of Palmdale, Fai Nomaaea -- a 35-year-old mother of eight -- can relate. The single mom was cleaning the yard when a man handed her a notice of foreclosure. Like Nelson, she had been paying her rent on time every month.

She now lives in fear every day.

more at:
http://www.cnn.com/2008/LIVING/wayoflife/05/28/renters.booted/index.html

[Selatius]

1. It will get worse. This economy is in a downturn, and unemployment is rising with inflation.

If people aren't being evicted because their landlord defaulted, then they will be evicted after getting laid off and then being unable to afford rent.

[NightWatcher]

2. rentors have few rights, and it's not fair

the only thing they can do is hope to find the person who ends up with the property, but many times they are just out of luck. I think that they should be able to sue the landlord for not paying the note on the property that they were renting, but what are you going to get from someone who just had a home foreclosed on.

[no_hypocrisy]

4. The inherent problem with paying rent is you gain no interest in the property.

You're buying time really on a monthly basis. You're protected from your landlord and your neighbors to a limited degree, but you're vulnerable to the banks that hold the mortgage on your building.

[marmar]

3. Another snapshot from a bollocksed-up country.....

:(

[depakid]

5. Seems to me that it's in the bank's interest to keep the property occupied

rather than vacant- if got no other reason than to rather cheaply ensure that it's not vandalized.

Then again, I've rarely known Southern Californians (especially California institutions) to act rationally in situations like this. Win/win is simply not part of their vocabulary.

[LisaM]

6. I've heard stories of people who bought multiple houses (that they couldn't afford)

as investment properties. So this is what happens now. Yet another reason to dislike people who speculate on real estate - not only does it drive up prices, now it's costing the renters too.

I agree, renters have few rights.

[Midlodemocrat]

7. I read that article. Shocking. Renters have no rights at all.

Very, very sad.

[mainegreen]

8. Never front money to your landlord. Pay ONLY for the upcoming month.

Also, if a land lord demands a huge security deposit, take that as a sign that they are not on the up and up.

Even in states with strong renters rights, ownership changes leaves you as a renter with few rights.

[enid602]

9. escrow acct.

I think there really should be laws that say that deposits should be held in escrow accts.

[mainegreen]

10. Even with those, it can be a pain.

In Maine they must use those, but I lived in a building that was sold to a new owner. By law the new owner becomes responsible for the security deposit, and must take steps to acquire the deposit from the previous owner. The new owner was an out of state corporation that owned rentals all over the country. Of course, they were jacking up the rent, so I gave my 30 days.
They tried to pull the whole you've got to go to the previous owner to get your security deposit back. I ended up having to threaten to sue them in smalls claims court, which at least in Maine due to renters rights I had a 100% chance of winning double my security deposit back + court fees. Once I explained what I was about to do to them *poof* like magic they found that they had received my deposit after all from the previous owners.

I can't imagine what a pain that would have been in a state with weaker renters rights laws.

[Occulus]

12. I *think* it's the same thing in MI

It's been several years since I reviewed PA 348 of (I think) 1972, but here, it's triple the deposit if it's used for any purpose other than actual damages to the property. As in Maine, I think I also recall provisions regarding changes of ownership.

I've always rented, so I've become very, very familiar with that particular law. Like I said, though, it's been a while. I could have bought a home if I wanted to, but frankly, I really don't want to deal with all the added costs- particularly home repairs and property taxes. It really isn't "throwing my money away", because I have a roof over my head, and most of the monthly mortgage payments I'm seeing advertised are about the same as what I'm paying in rent, not including water/sewer/trash, taxes, and repairs. True, I don't have an actual interest in the property other than living here ("buying time", as another poster accurately put it), but I also don't have any real liability for any part of the property beyond keeping it clean and as undamaged as possible.

For me, the tradeoff is worth it, especially since I'm still paying off other things. In the future, I'm sure I'll own a home at some point, but for now, I think I'll stick with renting.

Damn if this article doesn't make me nervous, though.

[Lydia Leftcoast]

14. I'm with you on that

As a free-lancer, my income is unstable, and I don't consider rent money "wasted" any more than I consider what I pay for groceries "wasted."

Sure I can be evicted (although my building is owned by the family that built it), but I can also up and leave on 30 days notice without worrying about whether my house will sell. (I've seen that happen to a lot of people.)

[Commie Pinko Dirtbag]

16. And this, ladies and gentlemen, is why capitalism has to be regulated.

Because people suck. And the more money they get, the harder they suck.

[kestrel91316]

11. We apartment dwellers in cities with rent control ordinances have

slightly better protections from eviction, but in the case of foreclosure on an apartment complex, I think we might still be screwed. Though it could be that the bank, as the new owner, would have to honor the leases and at lease pay relocation fees to get people out.

The only reason I had any protection at all when I got notice to vacate my rental house was that, with two rental houses on the one lot it was technically under rent control. And I still had to file a complaint against the new owner to get my relocation fee - he bought the property knowing full well he was obligated and still he fought.

[krabigirl]

13. How awful, Thank goodness we are renting from someone who paid of her house back in the 80s.

We still want to stop renting here someday, when we can, because she is getting up there in years and I don't think her children would want to keep renting the house.

[laylah]

15. Is Countrywide involved?

Would not be surprised.

[high density]

17. $3300/mo in rent?

Umm, buy a house.

[Brigid]

18. Welcome to Bush's America.

:banghead:

[Gianne38]

20. CNN mom forced to live in car

Hey I have an Idea maybe we all can go live with the smartest president,
he is still making money oh wait the arabs bailed his oil Co out. Both him and his father are in bed with the arabs. Or better yet let him or his family go fight in the war. He made this problem. Also I would like to reply to a early comment. by bb posted May 20th. I believe the person said something to the effect this lady must have made very bad life decisions and something about her family not helping her and 63 years old no savings. there are people who have made very GOOD LIFE DECISIONS and are in the same boat, no savings, little or no family to help out. THERE BY THE GRACE OF GOD GOES YOU or even me. Shame on you. Good thing you have a good income. cause you are going to need it. And I also bet bb. voted for bush. tell you what you go fight the war with him. lets use the 85 billion to help the great USA. cause I am tired of paying an arm and a leg for gas. what next are there going to be loan officers at the pump? or even people holding up signs "WILL GIVE KIDNEY FOR GAS, JOB OR HOME" again bb SHAME ON U

[LiberalEsto]

19. California tenant law

This seems much the same as the law in Maine.

Link: http://www.rentlaw.com/dep/cadeposit.htm

"In California, there is no such thing as a “non-refundable” security deposit. No matter what it’s called—a key deposit, cleaning fee, move-in fee, closing costs, last month’s rent, etc.—all money you pay in addition to your first month’s rent is refundable. Since “nonrefundable” deposits are illegal, don’t worry if your rental agreement includes a section about a “nonrefundable” deposit. This section will not be valid even if you have signed the rental contract or agreed to it."

"You can sue in small claims court for the deposit plus 2x the deposit in damages. The judge may award you damages if the landlord retained your deposit in bad faith."

"Rental Unit Sold:
Both owners can be responsible for returning your deposit when you move. The previous owner can give the new owner your deposit and send you a letter telling you the name, address, and phone number of the new owner and how much money was transferred. Then the new owner has to return your deposit. Otherwise you should request that the previous owner return it."