Foreclosing Lenders Using "Water Shut-Offs" To Harass Renters To Move, Claim Bay-Area Tenant Advocates

In Oakland, California, the Los Angeles Times reports on allegations that foreclosing mortgage lenders are intentionally not paying water bills on foreclosed homes, resulting in water shut offs, as well as using other tactics as a way to illegally force tenants out of homes without formal eviction proceedings:

• [A]rea activists [...] say low-income renters who have the right to remain in their homes are increasingly being harassed in foreclosure proceedings by lenders eager to be rid of them. Oakland is one of a number of California cities that offer tenants stringent protections against eviction, even in the case of foreclosure. But advocates tracking the mortgage crisis say such illegal attempts at eviction have been on the rise statewide.

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• Dustin Hobbs, spokesman for the California Mortgage Bankers Assn., attributed such eviction tactics as nonpayment of water bills to "some bad apples." "The strict laws in places like Oakland and the fact that this could expose companies to costly litigation are two big reasons why more legitimate lenders wouldn't use tactics like this," he said.

• Throughout the state, those who are watching the effect of foreclosures on tenants believe unscrupulous tactics are common. At the very least, lenders eager to push out tenants are offering "cash for keys" without informing tenants of their legal right to stay, particularly in cities with tough tenant protections, they say.

Housing advocates with Just Cause Oakland and Oakland non-profit law firm, Eviction Defense Center are among those defending tenant rights in these cases.

For more, see Renters tell of harassment in foreclosure proceedings (The lender stopped paying the water bill in a bid to evict them, Oakland duplex residents say. Activists say such tactics are on the increase).

For other posts involving the problems tenants face in homes in foreclosure, go here, go here, go here, go here, and go here. equity skimming unwittingly epsilon