Renters and foreclosures (Full Version)

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Vendaval -> Renters and foreclosures (6/17/2008 1:58:23 PM)

Folks,
 
If you are renting, beware what can happen if the property is foreclosed.  You may have to leave even if you have signed a lease.


"Renters, soldiers feel foreclosure pain"
 
By Patrick Rucker
8:03 ET, Mon 16 Jun 2008

"One in four housing-related calls to Legal Services of Greater Miami's renter advocacy line have been from distressed renters in recent weeks, while the group rarely heard such complaints last year, Hearne said.

Nevada Legal Services, which is giving Johnson legal advice, has also seen a rise in calls and estimates that 5,000 renting families have been displaced in the past 18 months.

In the Las Vegas area, many of those families have military ties and are already facing many other challenges."

http://features.us.reuters.com/cover/news/N13452769.html




camille65 -> RE: Renters and foreclosures (6/17/2008 2:00:16 PM)

Hopefully that possibility is no longer a surprise to renters, it has been happening with more and more frequency over the past year.




worththeeffort -> RE: Renters and foreclosures (6/17/2008 2:00:35 PM)

Yup, my coworker was forced to leave the apartment she's been living in for 8 years due to foreclosure. The bank couldn't find anyone to buy the place, so they evicted all of the tennants instead. Makes a whole lotta sense right? Kick out the people paying you every month, and let the place sit vacant instead. *rolls eyes*

~kitty




Irishknight -> RE: Renters and foreclosures (6/17/2008 2:10:03 PM)

A smart bank would keep the renters in and take their money.  At least thats how it seems.  A bird in the hand and all.




Evility -> RE: Renters and foreclosures (6/17/2008 2:14:57 PM)

If banks were in the property rental business they would not be called banks.




DomKen -> RE: Renters and foreclosures (6/17/2008 2:33:12 PM)

quote:

ORIGINAL: Evility

If banks were in the property rental business they would not be called banks.

That's just silly. In virtually all of these cases the foreclosures are being done not by banks but by companies that exist solely to buy mortgages from banks and then derive their income from mortgage payments.

If they gave a damn about actually making money, rather than in getting out while they can with all the money they've already scammed, they would simply hire real estate management companies to handle the rental properties as well as finding renters for properties they can't find buyers for and performing maintenance on unoccupied buildings to prevent them from becoming neighborhood problems and keep them sellable.




camille65 -> RE: Renters and foreclosures (6/17/2008 2:39:32 PM)

My ex lost his job about three years ago and decided he can't make his mortgage payments any longer. He went to his bank and explained the problem and to see if the bank wanted to buy the house. No go, he was told that he may as well just walk away from the house which will end up sitting empty and devaluing an already declining neighborhood.
I was surprised, I thought the bank would have tried to work with him but they wouldn't even discuss it. Flint MI has been in decline for a long time.

With the cost of things going up as much as they are, paying what used to be relatively easy bills has become a real burden for so many.




popeye1250 -> RE: Renters and foreclosures (6/17/2008 6:05:01 PM)

I see a business opportunity here.
There's a lot of houses that need to be burned down and bulldozed and the rubble trucked away.
"Repo a Go Go"




TheHeretic -> RE: Renters and foreclosures (6/17/2008 6:17:40 PM)

        If your landlord suddenly wants the rent in cash, that's a big warning sign.  Some of these property owners will drag it out to the very last, and the tenants won't know until the notice gets pinned to the door.  ALWAYS get a rent reciept, even if it means writing it on an envelope.  Laws vary from one state to another, contact a legal aid office immediately.  Know your rights BEFORE the holding company shows up.

       In CA, it is possible to drag the eviction out for months.  Open a separate bank account, and put the amount you would normally pay in rent into that every month.  Don't give the new owners a nickel without a new lease agreement.  Get all the utility and service bills placed in your name.  Best case, settle with the company and agree to move at about the halfway point in the process, and make sure you walk away without an eviction on your record.

       





hopelessfool -> RE: Renters and foreclosures (6/17/2008 6:24:19 PM)

Heritic, I disagree, Some places put it in the lease they can demand cash for payment of rent at any time. In our lease, they check our credit every couple of months, if the credit score isnt high enough of what they need to live there they will ask for cash rent for the next couple of months. If you bounce one check, the rest of your rent for the lease must be payed in cash or money order. Also if your apartment has to have a lot of matience calls (weve had 4 in the last 2 weeks they never fixed the problem) they ask for the rent in cash. Its not always that they are in trouble, they just are... very very annoying.




TheHeretic -> RE: Renters and foreclosures (6/17/2008 6:45:04 PM)

          Had to pop over and perv you, to see whereabouts you live, Hopeless.  PA is going to have a whole different set of laws.  I'm pretty sure there isn't anything that allows them to demand cash without giving you proof of payment, though.  If what you are describing are anything but bottom-tier practices, I'd consider moving.  The next couple years might be rough.

     




hopelessfool -> RE: Renters and foreclosures (6/17/2008 7:01:45 PM)

Not they just want a very "Exclusive" type of community, and those that dont fit the bill they do the best they can to "legally" Illegally make them move. Like im not 40 with a  bmw... so My rents in cash, I know its discrimination But they can legally say my credit score isnt high enough and that i owe a few medical bills, and thats why they wish cash, they always give a reciet, In fact theres 2 one on their data base and a paper copy.




joiduvie -> RE: Renters and foreclosures (6/17/2008 9:14:44 PM)

As a hint it is illegal to run your credit without your express permission.  Two, IRS has now offered a 900k forgivness to owners through 2009, so even if they can afford it, it may make buisness sense to be forclosed out.  This is not over, it is just getting interesting.  NOD's are public records you can check online to see if one is filed





cyberdude611 -> RE: Renters and foreclosures (6/17/2008 9:27:40 PM)

It actually hurts your credit score everytime someone other than yourself looks at your credit report.

They can look at your report when you move in, but I dont believe they can do anything else unless you default on the rent.




DomAviator -> RE: Renters and foreclosures (6/17/2008 10:05:59 PM)

quote:

ORIGINAL: TheHeretic

       If your landlord suddenly wants the rent in cash, that's a big warning sign.  Some of these property owners will drag it out to the very last, and the tenants won't know until the notice gets pinned to the door.  ALWAYS get a rent reciept, even if it means writing it on an envelope.  Laws vary from one state to another, contact a legal aid office immediately.  Know your rights BEFORE the holding company shows up.

      In CA, it is possible to drag the eviction out for months.  Open a separate bank account, and put the amount you would normally pay in rent into that every month.  Don't give the new owners a nickel without a new lease agreement.  Get all the utility and service bills placed in your name.  Best case, settle with the company and agree to move at about the halfway point in the process, and make sure you walk away without an eviction on your record.

      




Heretic, I have been a landlord in Colorado, NY, and Texas and I assure you that the saavy landlord always comes out on top. I even had clauses in there that allowed me to "immediately take posession of the property" (ie to evict without the court process) in the event of "issues related to safety, criminal conduct or illicit use of the premisis. or willful and intentional destrustion of the leased property". I also had a clause setting venue as "Harris County Texas" and "construction of this agreement shall be interperted under the laws of Harris County Texas." SO, if my tenant in buffalo NY cant pay their rent and wants to fight their eviction, they have to bring their little asses to Houston Texas to fight it. All entirely legal because they accepted the lease with stipulated venue and construction of law.   What a tenants rights are depends entirely on how good your lawyer is. The way my leases were constructed - if I find out there was an arrest on the premesis, or anything illegal going on for which I can have you arrested - POOF your out without even a day in court. Want your day in court? You can have it in Texas! Failure to appear? Whoops default judgement... Kid colored on the wall? Youre out. Garbage strewn around? Youre out. Anything you may have done that i could get an estimate for that exceeds the amount of your security deposit - well you have 24 hours to up your security deposit in cash or your out. Its all about how good the lawyer drafts the agreement. Rest assured, that any agreement anyone ever signs with me is clearly biased to my side, but not so biased as to be ruled unconscionable and hence void, and any rights they may have that would later prove to be a pain in my ass have been waived.




hizgeorgiapeach -> RE: Renters and foreclosures (6/18/2008 5:04:38 AM)

Careful, DA - admitting this (while all true and legal) could cause another outbreak of whining and recriminations by the more liberal elements on the forums...   [sm=anger.gif]




DomKen -> RE: Renters and foreclosures (6/18/2008 6:01:44 AM)

DA, as usual, is full of it. While a lease is a contract it is one governed by specific state and local laws. That includes restrictions on what can be in leases and outside the jurisdiction venues and no hearing evictions are definitely not allowed. Specifically a lease of a property in NY is under NY state law as well as the local laws of the jurisdictions where the proerty is.

All DA has done, if he actually has done this, is get people to sign unenforceable leases. Call a lawyer who specializes in real estate law and ask them if you don't believe me.




DomAviator -> RE: Renters and foreclosures (6/18/2008 6:20:08 AM)

Dont play "jailhouse lawyer" it is very unbecoming and disturbing to erroniously think that you know more than either myself, or the $300 an hour lawyer who drafts my documents which have been tested and upheld in court. Setting a venue and governing law for interpertation is standard. I live in Texas, but my cell phone contract is under California law and in it I even waive the right to sue - all disputes must go to arbitration under California law. The proper term is called "Choice of Venue/Forum Clause" or "Statuatory Construction Clause" aka "choice of law" It is a cute legal trick used by saavy businesspersons who actually know the law rather than guessing at it. As I accurately stated - any document executed with me will be in my favor, but no so obviously so as to be deemed unconscionable. Afterall, the key is to get them to sign it so that I can then bend them over and ram it up their ignorant asses as I empty their wallets. My lawyer is VERY good at that, hence the reason he gets $300 an hour.

For your information you can read up on these and other clauses to avoid at http://www.irinfo.org/Articles/article_3_2003_incollingo.html

Edited to add. By the way though - from a landlords standpoint an "unenforceable lease" wouldnt be bad either... See if a lease get voided by a court, then its month to month tenancy meaning "get the fuck out of my house by the end of the month, or I staple a 72 hour notice to the door and then the sherriffs dept carries your shit to the curb..." The lease is for the tenants protection not the landlord. With a month to month tenancy I can quadruple your rent at will.... [:D]

Edited to add: Remember I said criminal conduct and your out without even an eviciction? NYS Real Property Law:

§  231.  Lease,  when  void;  liability of landlord where premises are
occupied for unlawful purpose.
1. Whenever the lessee or occupant  other
than  the  owner  of  any  building or premises, shall use or occupy the
same, or any part thereof, for any illegal trade, manufacture  or  other
business,  the  lease  or agreement for the letting or occupancy of such
building or premises, or any part thereof shall thereupon  become  void,
and  the landlord of such lessee or occupant may enter upon the premises
so let or occupied.

    2. The owner of real property, knowingly leasing or giving  possession
of  the  same to be used or occupied, wholly or partly, for any unlawful
trade, manufacture or business, or knowingly permitting the same  to  be
so  used,  is liable severally, and also jointly with one or more of the
tenants or  occupants  thereof,  for  any  damage  resulting  from  such
unlawful use, occupancy, trade, manufacture or business.
   3.  For  the  purposes of this section, two or more convictions of any
person or persons had, within a period of  one  year,  for  any  of  the
offenses described in section 230.00, 230.05, 230.20, 230.25, 230.30, or
230.40  of  the  penal law arising out of conduct engaged in at the same
premises consisting of a dwelling as that term is defined in subdivision
four of section four of the multiple dwelling law shall  be  presumptive
evidence of unlawful use of such premises and of the owners knowledge of
the same.
   4.  Any  lease  or  agreement  hereafter  executed  for the letting or
occupancy of real property or any portion thereof, to  be  used  by  the
lessee  as  a  residence,  which  contains  therein a provision pledging
personal property exempt by law from levy  and  sale  by  virtue  of  an
execution,  as  security  for  the  payment of rent due or to become due
thereunder, is void as to such provision.
   * 5. The attorney general may commence an action or proceeding in  the
supreme  court  to  enjoin  the continued unlawful trade, manufacture or
business in such premises.
   * NB There are 2 sub 5's
   * 5. For the purposes of this section, two or more convictions of  any
person  or  persons  had,  within  a  period of one year, for any of the
offenses described in section 225.00, 225.05,  225.10,  225.15,  225.20,
225.30,  225.32,  225.35  or  225.40  of  the  penal law, arising out of
conduct engaged in at the same premises consisting of a dwelling as that
term is defined in subdivision four of  section  four  of  the  multiple
dwelling  law  shall  be  presumptive  evidence  of unlawful use of such
premises and of the owner's knowledge of the same.
   * NB There are 2 sub 5's
   6. Any owner or tenant, including a tenant of one or more rooms of  an
apartment  house,  tenement  house  or multiple dwelling of any premises
within two hundred feet of the demised real property,  may  commence  an
action  or  proceeding in supreme court to enjoin the continued unlawful
trade, manufacture or other business in such premises.

 
Remember I said push it as far as I can without it being deemed unconscionable?     §  235-c.  Unconscionable lease or clause. 1. If the court as a matter
of law  finds  a  lease  or  any  clause  of  the  lease  to  have  been
unconscionable  at  the time it was made the court may refuse to enforce
the lease, or it may enforce the remainder  of  the  lease  without  the
unconscionable  clause,  or  it  may  so  limit  the  application of any
unconscionable clause as to avoid any unconscionable result.
   2. When it is claimed or appears to the court  that  a  lease  or  any
clause  thereof  may  be  unconscionable the parties shall be afforded a
reasonable opportunity to present evidence as to  its  setting,  purpose
and effect to aid the court in making the determination.

NYS Civil Practice   §  501. Contractual provisions fixing venue. Subject to the provisions   of subdivision two of section 510, written  agreement  fixing  place  of
trial,  made  before  an  action  is commenced, shall be enforced upon a
motion for change of place of trial.





Alumbrado -> RE: Renters and foreclosures (6/18/2008 7:36:55 AM)

Your rights as a tenant include the right to "quiet enjoyment," as it is called in the law. This means the landlord cannot evict you without cause or otherwise disturb your right to live in peace and quiet.
http://www.oag.state.tx.us/consumer/tenants.shtml
 
If you receive a notice to vacate from your landlord, you do not have
to move out of the unit by the date indicated in the notice. If you decide
to stay, the landlord can then file an eviction suit with a local justice of
the peace.
The landlord still cannot remove the tenant or the tenant’s property
without a court order, except in the case of abandonment or when
exercising a landlord's lien. For example for non-payment of rent. After the
landlord files the eviction suit, the court clerk will send the eviction citation
to the Constable’s office for service to the tenant.
If you receive a citation, you should review it carefully. It will outline your
rights. You will then have the opportunity to go before the justice
of the peace to tell your side of the story. You do not need an attorney
present, but it may be advisable for you to consult with one. If you lose,
you still have the right to appeal the decision.
 




sub4hire -> RE: Renters and foreclosures (6/18/2008 7:46:11 AM)

quote:

ORIGINAL: cyberdude611

It actually hurts your credit score everytime someone other than yourself looks at your credit report.




I used to believe that as well.  Most recently I have been told that is not the case.  I read it on equifax I believe.  I just disputed some property that was looking negatively on me in California.  Property I never owned.  It was an easy dispute and removed from my credit report rapidly.

Also, why would a bank want to own someones house?  To have to deal with renters and having to replace walls....heaters...etc all of the time?  A bank is in the banking business not the landlord business. 





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