NY Court Denies Tenant Eviction After Foreclosure Sale; Failure To Name, Serve All Occupants As Parties In Foreclosure Action Fatal To Removal Attempt

A February, 2008 lower court decision in Nassau County, New York addressed a situation involving the attempted eviction of four occupants in a home, the title to which was acquired by a mortgage lender in a foreclosure sale that foreclosed the ownership interest of the last owner of record, one Angello Bernard. The court described the four occupants as follows:

• [Kesha] Springer(1) resides in the Premises with her mother, Lecreta Springer, her sister, Cherryann Dalrymple and Cherryann Dalrymple's twelve year old son. She avers that she has lived in the Premises since 1997.(2) The Premises were previously owned by her parents. When Kesha's father died, her mother had trouble making the mortgage payments. To avoid foreclosure, Lecreta Springer transferred the property to Bernard, who refinanced the property.(3) Although Bernard owned the property, Lecreta Springer made the mortgage payments. Lecreta Springer was again unable to make the mortgage payments and the Property was foreclosed. Lecreta Springer and Kesha have been negotiating with the Bank to purchase premises but have been unable to do so.

In denying the foreclosing lender's motion for a writ of assistance to evict the occupants after the foreclosure sale, the court said:

• While a writ of assistance may be issued evicting [Kesha] Springer and Bernard from the property, a writ cannot be issued terminating the occupancy of Lecreta Springer, Cherryann Dalrymple or her son. Lecreta Springer, Cherryann Dalrymple and her son were not named or served as parties in the foreclosure action.(4)

The occupants were represented by attorney Lawrence S. Lefkowitz, Hempstead, New York.

For more, including the court's discussion of the New York law it applied in reaching its decision in this case, see MERS, Inc. v Bernard, 2008 NY Slip Op 50308(U) [18 Misc 3d 1134(A)]; February 19, 2008, Supreme Court, Nassau County.

(1) Along with Angello Bernard, Kesha Springer was named as a defendant in the foreclosure action and served with the foreclosure complaint.

(2) It is important to note that the occupants were living in, and were in possession of, the home prior to the commencement of the foreclosure action. The court's decision in this case may very well have been different had the occupants moved in after the commencement of the action, or more precisely, after the recording of the lis pendens once the action was initiated.

(3) I wonder if this was an equity stripping, foreclosure rescue scam???

(4) Apparently, the fact that one of the home's occupants was only 12 years old was no bar to his due process right to be named as a party in the foreclosure action and be served with the lawsuit. Presumably, if there were more minor children living in the household, they, too, would have been entitled to their due process right to be named and served in the foreclosure action, regardless of age. I wonder how many attorneys for foreclosing lenders ever bother naming and serving any occupants who are minors.

The fact that the foreclosing lender named "John Doe" & "Jane Doe" to designate any of the home's occupants as additional defendants in the foreclosure action was apparently, at least in this court's view, insufficient to cut off their occupancy rights in the home after completion of the foreclosure. For more on the use of "John & Jane Doe" alias when naming unknown tenants in foreclosure actions, see yesterday's post, Failure To Name Tenant In Home Foreclosure Action Thwarts Subsequent Eviction Attempt; Use Of "John Doe" Alias Ruled Ineffective Absent Due Diligence. (I can't help wondering how often some attorneys representing foreclosing mortgage lenders mindlessly utilize the "John & Jane Doe" mechanism to name unknown tenants & occupants without exercising any diligence in attempting to ascertain their actual names - maybe as often as they mindlessly use "lost note affidavits" in cases where they don't have physical possession of the actual promissory note). TenantRentSkimmingAlpha foreclosure faulty notice ScrewUpProcessServing

Chicago-Area Sheriff's Office To Safeguard Against Illegal Foreclosure Evictions By Implementing New Procedure

In Cook County, Illinois, the Daily Herald reports:

• [A]bout 40 to 45 Cook County Sheriff's deputies are learning a new eviction procedure that should at least give innocent tenants a few weeks to make a more orderly transition to new digs, said Kevin G. Connelly, first assistant chief deputy for sheriff Tom Dart.

***

• By law, the sheriff can evict only people whose names are on the order.(1) If deputies find a tenant in the building who can show proof of residency - a driver's license, a lease, or even a piece of mail - the sheriff won't evict them if they're not named in the court order. Instead, the sheriff's office tells the mortgage company the name of the tenant and the company must then go back to a judge to try to get the judge to add the tenant to the eviction notice.

***

• To provide a little more notice, sheriff's deputies will begin posting eviction notices, starting [this week], at rental property a week in advance. The notice will tell tenants that if they're not listed in the order, they can forestall eviction by getting proof of residency to the sheriff before the eviction date. Given the slow pace of the courts, adding those new names to the eviction notice means tenants will have some time to either get legal representation or arrange for new housing. "You're talking a couple of months," said Connelly, who noted that this still means tenants will eventually be forced out, just not without notice and not without a few weeks to make future arrangements.

For the story, see New rules gives tenants of foreclosed buildings some breathing room.

For a story on the problem of illegal foreclosure evictions in Cook County, Illinois, see The Chicago Reporter: A Renter's Nightmare.

For other posts involving the problems tenants face in rented homes in foreclosure, go here, go here, go here, and go here.

(1) In a case involving a family of six, I wonder if all six occupants (including any minor children) need to be named in the order. Or in the case of a 4-unit foreclosed home averaging 3 occupants per unit, do all 12 occupants need to be named in the eviction order? TenantRentSkimmingAlpha

12 Families In Milwaukee Rental Building Avoid Boot As Foreclosing Lender Turns On The Gas

In Milwaukee, Wisconsin, WTMJ-TV Channel 4 reports:

• An orange notice is tacked up on the main entrance to 6372 N. 89th Street. It informs tenants of the 1970’s era apartment building they must be out by September 5. [... Oscar] Jordan said he has always paid his rent on time. His gas is supposed to be included in that rent, but eight days ago, the gas was shut off. Seems the landlord, embroiled in foreclosure proceedings, stopped paying the gas bill. Without gas coming into the building, the city deemed the structure uninhabitable. “A lot of people in here got kids,” Jordan said of the eleven other families sharing the building. “You can’t buy school clothes and then turn around and relocate, pay rent, security deposit.”

***

• Late Tuesday, tenants may have earned a reprieve. A representative of Waterstone Bank, which holds the note on the property, told Jordan the institution is taking over the property and indicated the gas would be turned back on.

For more, see 12 Families Facing Eviction.

For other posts involving the problems tenants face in rented homes in foreclosure, go here, go here, go here, go here, go here, go here, and go here. TenantRentSkimmingAlpha

Military To Pick Up Moving Tab For Servicemembers Renting From Landlords In Foreclosure

In Washington, D.C., Air Force News reports:

• A new change to the Joint Federal Travel Regulations authorizes the military to pay to move servicemembers and their families whose landlords default on property the military members are renting. [...] The change is retroactive to July 30, the date President Bush signed the Housing and Economic Recovery Act of 2008. [..] The federal regulation change is designed to help military servicemembers forced to relocate locally when landlords default on their mortgages, [a spokeswoman] said. It does not apply to military members who own their own homes and default on their loans.

For more, see Travel regulation change protects renters whose landlords default.

See also:

• Army Times: DoD moves to protect renters from foreclosure,
• Army Times: New law helps renters forced out by foreclosure,
• Official memorandum announcing change. TenantRentSkimmingAlpha Servicemembers Civil Relief Act

Report: As Many As 54,000 NYC Tenants In Working Class Neighborhoods May Face Impact Of Foreclosure Squeeze On Private Equity Firms

In New York City, The New York Times reports:

• In recent years, private equity firms that once rarely ventured outside Midtown Manhattan began investing in Harlem, the South Bronx, East New York and other working-class neighborhoods, paying top dollar for tenement buildings in the belief they could make big profits by replacing rent-regulated residents with higher-paying tenants.

• But there is growing evidence that those investments are not paying off. Tenant advocates and bond rating agencies say that many of those firms’ properties are in danger of foreclosure because optimistic profit projections have fallen short, leaving enormous gaps between the rent rolls and mortgage payments. As many as 54,000 of the 90,000 apartments acquired in those deals, or 60 percent, are at risk, according to a new report by the Association for Neighborhood Housing and Development, a nonprofit advocacy group for low- and middle-income tenants.

***

• Tenant advocates say that the trend could lead to deferred maintenance and cuts in services, which could undermine surrounding neighborhoods. They also contend that because the loans were based on unrealistic revenue projections, rather than current rents, landlords would be able to make profits only by aggressively displacing tenants and then raising rents.

• “These predatory equity investors have dug a deep financial hole for themselves,” said Benjamin Dulchin, deputy director of the Association for Neighborhood Housing and Development. “But if policy makers allow the 54,000 affordable apartments that are at risk of default to go into financial and physical distress, then many communities will be dragged down into that hole with them.”

For more, see Mortgage Crisis Is Foreseen in Housing Owned by Private Equity Firms. TenantRentSkimmingAlpha

County Sheriff Suspends All Chicago-Area Foreclosure Evictions; Points To Problem Of Unsatisfactory Notice To Occupants As Reason

In Chicago, Illinois, the Journal Gazette reports:

• The sheriff here said Wednesday that he's ordering his deputies to stop evicting people from foreclosed properties because many people his office has helped throw out on the street are renters who did nothing wrong. "We will no longer be a party to something that's so unjust," a visibly angry Cook County Sheriff Tom Dart said at a news conference. "We have to be sure that when we are doing this - and we are destroying some people's lives - we better be darned sure we're talking about the right people," Dart said.

***

• Dart said that from now on, banks will have to present his office with a court affidavit that proves the home's occupant is either the owner or has been properly notified of the foreclosure proceedings.

***

• He talked about tenants who dutifully pay their rent, then leave one morning for work only to have authorities evict them and put their belongings on the curb while they are gone. By the time they get home, "The meager possessions they have are gone," he said. "This is happening too often."

***

• Dart said he believes banks are not doing basic research to determine that the people being evicted are, in fact, the homeowners. He said that in a third of the 400 to 500 foreclosure evictions his deputies had been carrying out every month, the residents are not those whose names are on the eviction papers. Nor, he said, are banks notifying tenants that the homes they're renting are in foreclosure. He added that when banks do learn the correct names of those living on foreclosed-upon property, their names often are simply added to eviction papers.

For more, see Chicago's Cook County won't evict in foreclosures.

See also, The New York Times: Sheriff in Chicago Ends Evictions in Foreclosures.

For more on the reported (up until now) ongoing problem of illegal foreclosure evictions in Cook County, Illinois, see:

• The Chicago Reporter: A Renter's Nightmare,
• Chicago-Area Sheriff's Office To Safeguard Against Illegal Foreclosure Evictions By Implementing New Procedure. TenantRentSkimmingAlpha

California Tenants In Foreclosed Homes Now Get To Live Free For 60 Days After Sale While Looking For Another Rental

For tenants in California, a blurb buried at the end of a recent article in the Visalia Times Delta serves as a reminder on a new state law protecting tenants in foreclosed homes:

• [A] new state law, however, gives renters 60 days after a foreclosure sale to move out. During that time, tenants are not required to pay rent and landlords have no right to ask for it, said Suzanne Swenk, a supervising attorney with the Visalia-based Central California Legal Services, which advises low-income tenants in rental disputes.

California tenants are well advised to research the local ordinances of their cities or towns to determine if those ordinances give even greter protections than the new state law.(1)

For the story, see Renters rocked by foreclosure evictions (Landlords who default on mortgages leave tenants without homes).

(1) For example, reportedly under San Francisco laws, foreclosure is not grounds for a tenant eviction in building covered by the local rent control law. Unless tenants have stopped paying rent or otherwise have misbehaved, generally a tenant in a rent-controlled building can be forced out only when a new owner plans to demolish the property, has secured the necessary approvals to convert into it condominiums or plans to move in family members or him or herself, according to the city's rent ordinance. Even then, the owner typically must provide several months' notice and thousands of dollars in relocation costs. For more, see San Francisco Chronicle: Foreclosure's hidden victims. TenantRentSkimmingAlpha

DC Laws On Foreclosure Evictions Let Tenants Stay Put Until Lender Resells Home

Buried in a recent article in The Washington Post on tenants finding themselves unwittingly caught up in foreclosure rent scams is this excerpt on the protection afforded tenants renting from a landlord in foreclosure in Washington, D.C.:

• The District has some of the nation's strongest tenant protection laws. D.C. renters can stay put after a house is foreclosed on, said Julie Becker, a senior staff lawyer at the District's Legal Aid Society. The tenant would then pay rent to the bank until the bank sells the home. If a new owner wants to move in, it's up to him or her to evict the renter, Becker said. If the owner does not move in, the tenant has the right to stay.

• "But a lot of renters don't know that," Becker said. "They get a notice in the mail, usually addressed to the owner, saying they have to move out within 30 days, and they just pack up and leave." The Office of the Tenant Advocate, an independent city agency, now receives 10 to 12 calls a week from panicked renters, said Lennie Mitchell, the agency's spokesman. Next week, the agency plans to post a form on its Web site that tenants can send to the banks informing them of D.C. laws. It plans to follow up with a marketing blitz that includes public-service TV ads.

For the story, see Foreclosure Crisis Catching Renters Off Guard.

For other posts involving the problems tenants face in rented homes in foreclosure, go here, go here, go here, go here, go here, go here, and go here. TenantRentSkimmingAlpha

Six Seniors In Hospice Care Home In Foreclosure Get Booted As Landlord Pockets Rent, Stiffs Bank; Ambulances, Medics Called In To Carry Out Eviction

In Henderson, Nevada, the Las Vegas Sun reports:

• The six senior citizens were strung to IV drips in a Henderson home converted into a geriatric care facility. The hospice home, a big stucco beast, was leased. The tenants, a couple who cared for the aging adults, never missed a rent payment. The owner of the house, however, was hardly so diligent. He lived outside the state and beyond his means. He stopped paying the mortgage and never said a word. Hello, foreclosure.

• Henderson deputy constables went to the home in March 2007 with a judge’s order: Everybody out. Even the seniors sinking into their sheets had to clear out — within 24 hours. The bank wanted its house back, like, now. This was the first anybody in the home had heard of the foreclosure.

• Ambulances were called to transport the elderly evictees. Temporary housing had to be hustled up overnight. Last-minute medical specialists had to be hired. The whole thing made your stomach turn, Henderson Constable Deputy Director Stephen Kilgore said.

***

• On June 2, members of the [Nevada Legislature's] Subcommittee on Mortgage Lending heard testimony from Deputy Director Kilgore, who shared the geriatric home horror story.

The [Nevada] Legislative Commission Subcommittee on Mortgage Lending and Housing, a group researching legislation to protect renters, is planning to draft legislation that would make it a felony for homeowners to hide looming foreclosures from renters, according to the story.

For more, see When renter pays, owner doesn’t: You’re out, tenant.

For other posts involving the problems tenants face in rented homes in foreclosure, go here, go here, go here, go here, go here, go here, and go here.

Go here for other posts on Police involvement in foreclosures. SheriffDeputiesForeclosureAlpha TenantRentSkimmingAlpha

Residents In Mobile Home Park In Foreclosure Get The Boot; Unfit For Human Habitation, Say Code Inspectors As Unpaid Bill Results In Water Shutoff

In Largo, Florida, WTVT FOX Channel 13 reports:

• After a week without water, the city of Largo is shutting down a mobile home park and displacing eight families for health reasons. The red tags started going up first thing in the morning -- "unfit for human habitation" -- with a deadline of Thursday at noon for families to leave. Code inspectors blamed the landlord's unpaid water bill.

***

• Court documents show the landlord's problems were more serious than an unpaid water bill. A $1.4-million foreclosure suit is pending in the Pinellas courts.

For the story, see City of Largo closes mobile home park. TenantRentSkimmingAlpha

Failure To Name Tenant In Home Foreclosure Action Thwarts Subsequent Eviction Attempt; Use Of "John Doe" Alias Ruled Ineffective Absent Due Diligence

Last month, a Nassau County, New York trial court ruled that, under the specific facts of the case, the failure by a mortgage lender to name a tenant as a defendant in a home foreclosure proceeding kept the tenant from being subsequently evicted after the foreclosure sale. In addressing the lender's failure to name the tenant in the foreclosure action, the court made these observations (citations footnoted for ease of reading):

• [T]he respondent [tenant] was not properly named as a party in the foreclosure proceedings [...]. "In order to cut off the interest of an occupant of the premises, the occupant must be named as a party in the foreclosure proceedings."(1) The respondent was not named in the foreclosure proceedings and therefore her rights were "not affected by the judgment of foreclosure and sale."(2)

• The respondent, as the sole tenant, is a necessary party to the foreclosure proceeding (see 78 NY Jur. 2d Mortgages §588). As a necessary party who was not named in the foreclosure proceeding, the respondent's rights were "unaffected by the judgment and sale, and the foreclosure sale may be considered void as to the omitted party."(3) Thus, a tenant or occupant who was not named as a party in the foreclosure action retains his or her possessory rights and a right of redemption.(4)

***

• The foreclosure action has a designation for "John Doe" so as to include any unknown persons. The fact that the respondent [tenant], as a necessary party, was not named or served in the foreclosure proceeding would not be remedied, even if she, as an unknown person, were considered to be a "John Doe." CPLR 1024 [of the New York statute] permits a plaintiff to proceed against an unknown party but would be inapplicable in regard to the respondent. "Before naming a party as a "John or Jane Doe", the plaintiff must establish that it has made a genuine effort to ascertain the name of the party but has been unable to do so."(5) If the plaintiff knew or could have discovered the actual names of the parties named as "John or Jane Doe" with the exercise of due diligence, then the summons naming such parties as unknowns is jurisdictionally defective.(6)

Representing the tenant was the non-profit firm Nassau/Suffolk Law Services Committee, Hempstead, New York.

For the court decision, see Countrywide Home Loans, Inc. v Williams; 2008 NY Slip Op 51319(U) [20 Misc 3d 1111(A)]; July 1, 2008, District Court Of Nassau County, First District.

(1) Mers, Inc. v. Bernard, 18 Misc 3d 1134(A) [SCt, Nassau County 2008] (citing Douglas v. Kohart, 196 App Div 84 [2d Dept 1921]; and Krotchka v. Green, 121 Misc 2d 471 [Yonkers City Ct, 1983]).

(2) Id. (Citing Polish National Alliance of Brooklyn, U.S.A. v. White Eagle Hall Co., Inc., 98 AD2d 400 [2d Dept, 1983] and Empire Savings Bank v. The Tower Co., 54 AD2d 574 [2d Dept, 1976].

(3) 6820 Ridge Realty, L.L.C. v. Goldman, 263 AD2d 22, 26 [2d Dept, 1999] (see Si Bank & Trust v. Sheriff of the City of New York, 300 AD2d 667, [2d Dept, 2000]).

(4) Id.; and Davis v. Cole, 193 Misc 2d 380 [SCt NY, 2002].

(5) Mers, Inc. supra, citing Tucker v. Lorieo, 291 AD2d 261 [1st Dept, 2002] and Porter v. Kingsbrook OB/GYN Associates, P.C., 209 AD2d 497 [2d Dept, 1994].

(6) Id. citing ABCKO Industries, Inc. V. Lennon, 52 AD2d 435 [1st Dept, 1976]. TenantRentSkimmingAlpha foreclosure faulty notice ScrewUpProcessServing

Legal Mechanisms In Connecticut Protect Tenants In Foreclosed Homes Against Short Notice Evictions, Loss Of Security Deposit

In Connecticut, the New Haven Register reports:

• Amy Eppler-Epstein, an attorney for New Haven Legal Assistance Association, Inc., said there are only two ways a bank can evict a tenant in Connecticut: by naming the tenant in the foreclosure lawsuit or after winning the lawsuit, bringing an eviction case. In most instances, tenants can seek a stay of up to six months through the court.

• "If you get legal papers, don't ignore them," she said. Rather, get legal advice. Low-income tenants [in Connecticut] can call Statewide Legal Services at 1-800-453-3320. Banks often offer a "cash-for-keys" arrangement, meaning they offer the tenant a certain amount of money to move by a specific date and avoid eviction proceedings. In [renter Aurea] Ortiz's case, she was offered $500 but could not find a new home by Wells Fargo's cutoff.

• "If a tenant can find a place in short order, that could be a good deal for them," Eppler-Epstein said. But if not: "They cannot just put you out in a week. You have the right to go to court." Renters should keep proof they paid a security deposit, she said, because whoever owns the unit when the tenant moves out is liable to return the money, whether or not it was ever placed in escrow.

For more, see Stuck in the middle: Renters swept up in wave of foreclosures.

See also, Hartford Business Journal: Foreclosures Blindsiding Renters:

• [T]here are legal mechanisms that can protect [Connecticut] renters, including a six-month stay of execution on evictions if the tenant is not the cause of the notice, [attorney Richard] Tenenbaum said. But few tenants are aware that they have a legal right to contest being thrown out, he added. TenantRentSkimmingAlpha

Carrying Out Foreclosure Evictions "Like A Sick Sort Of Game Show" For Deputies?

In Clark County, Nevada, the Las Vegas Sun reports:

• It’s like a sick sort of game show: What’s behind Door No. 1? Abandoned furniture? A man with a gun? A rabid bichon? A housewife wielding a frying pan?

• Because they’re the bearers of get-out-in-three-days eviction notices, constables in Clark County are some of the most vocal critics of the foreclosure process as it applies to renters. This is because they’re the bearers of bad news. And although nobody likes delivering disappointment, that’s not really the issue.

• The problem is that blindsiding people is dangerous. Bob Wyant, a Las Vegas deputy constable, has seen bullets fly through front doors. He’s had to fight people who start problems. One guy saw Wyant, walked upstairs and shot himself in the head. A woman locked herself in her bedroom with a blazing barbecue grill, trying to give herself, and her cats, carbon monoxide poisoning.

For more, see Constables deliver bad news at their peril.

Go here for other posts on Police involvement in foreclosures. SheriffDeputiesForeclosureAlpha TenantRentSkimmingAlpha

California Tenants In Foreclosed Homes Now Get 60 Days Notice Before Facing The Boot

Buried in a story in voiceofsanddiego.org is this excerpt on tenants rights in California:

• [Foreclosed h]omeowners who live in their house are only entitled to three days once the bank has repossessed the house before they're evicted. Tenants get at least 60 days to stay there, and they don't have to pay rent.

• "Even though it's bad, it's really not as bad as it sounds," said local attorney Steven Kellman, who runs the Tenants Legal Center. "It's kind of a soft landing. Some of them actually think of it as a benefit, because they can save up their rent."

• Gov. Arnold Schwarzenegger signed a bill into law in July to extend the amount of time such tenants are given before they must vacate the house from 30 days to 60 days. That gives tenants an extra month to save the money they would typically spend on rent and look for a new place. It also signaled an acknowledgement that when landlords can't pay their mortgages, they're unlikely to have the money to refund tenants' security deposits, which are usually about one month's rent.

For the story, see Renters Caught When Banks Foreclose on Landlords. TenantRentSkimmingAlpha

Concerns Over Integrity Of Mortgage Industry’s Foreclosure Eviction Practices Of Tenants Alarm Cook County Sheriff’s Office

In Cook County, Illinois, The Chicago Reporter reports:

• In many cases, the [tenant foreclosure] evictions have been legal. In others they’re not because mortgagees—a bank or company that collects mortgage payments— fail to give tenants ample notice or an opportunity to contest the eviction in court. In some cases, [...] the evictions are illegal because there is no court order against the tenants themselves.

• In Cook County, tenants facing an illegal eviction often learn about it when they open their door to a sheriff’s deputy telling them to leave. Sometimes, [...] the deputies’ orders instruct them to evict the landlord, not the tenant. If tenants are home and can verify their identity, the deputies leave and report back to the lender.

• Problems arise when tenants aren’t home, said Martha DiCaro, an assistant chief who runs the Eviction, Levy and Warrant Unit of the Cook County Sheriff’s Office. “We are under the impression that the person whose name is on the order is the person who lives there,” DiCaro said. “We take the court’s order at face value and we enforce it.”

• Concerns over the integrity of the mortgage industry’s eviction practices have alarmed the sheriff’s office.

For more, see A Renter's Nightmare.

For other posts involving the problems tenants face in rented homes in foreclosure, go here, go here, go here, go here, go here, go here, and go here. TenantRentSkimmingAlpha

California State Law, Local Rent Control Law Gives Strong Protections For San Francisco Tenants In Foreclosed Homes

Buried in a recent article in the San Francisco Chronicle is the following excerpt addressing the rights of San Francisco tenants in foreclosed homes that come within the scope of the city's rent control laws, as well as state law:

• Lenders who take back properties or investors who pick up foreclosed homes generally prefer the buildings empty, because that makes them easier to sell. Under San Francisco laws, however, those aren't grounds for an eviction in a rent-controlled building.(1)

• Unless tenants have stopped paying rent or otherwise have misbehaved, generally they can be forced out only when a new owner plans to demolish the property, has secured the necessary approvals to convert into it condominiums or plans to move in family members or him or herself, according to the city's rent ordinance. Even then, the owner typically must provide several months' notice and thousands of dollars in relocation costs.

• In addition, new owners - a bank, a trustee or otherwise - generally become liable for the same obligations of the previous landlord, said Robert Collins, deputy director of the San Francisco Rent Board. That means that if the original lease said the landlord pays for electricity, [...] the company that bought it is responsible now.

For more, see Foreclosure's hidden victims.

(1) According to the story: State and local laws prohibit landlords from evicting tenants or shutting off utilities in most circumstances like these, but not all renters are aware of the rules, and not all of the entities that take control of properties try to learn them. "The basic problem is that the people who are acquiring these properties, they don't understand or want to understand that tenants have rights in San Francisco," said Tommi Avicolli Mecca, director of counseling programs at the Housing Rights Committee of San Francisco. "You can't just go in and tell them to leave, you can't shut off utilities, you can't call the police, you can't do any of that stuff." He and other tenant advocates and attorneys worry that many renters who aren't aware of these rules are being pressured into handing over their keys. TenantRentSkimmingAlpha

Pittsburgh Landlord Facing Foreclosure Leaves Tenants In A Dozen Apartment Buildings With Uncertain Future

In Pittsburgh, Pennsylvania, KDKA-TV Channel 2 reports:

• [T]here's word of a massive foreclosure on a dozen apartments buildings whose tenants who face an uncertain future. All of the buildings are owned by one landlord who owes the bank more than $2 million dollars. Sheriff sales are the end of the line in the foreclosure process. Now on the block are 11 apartment buildings sprinkled through the Southside and a few other neighborhoods and towns. All of them are currently owned by one landlord, Davin Gartley, the owner of Davin Investments, who is in default to the bank for some $2.4 million in loans.

For more, see Renters Caught In Middle Of Foreclosures (read story) (watch KDKA video).

For other posts involving the problems tenants face in rented homes in foreclosure, go here, go here, go here, go here, go here, go here, and go here. TenantRentSkimmingAlpha

Cleveland-Area Group To Start Program Notifying Tenants Renting Homes Going Into Foreclosure

In Cuyahoga County, Ohio, The Cleveland Plain Dealer reports:

• [A] new program starting in August would notify tenants in Cuyahoga County that the property they're renting is being foreclosed on, giving them about six months to prepare to move. The program works by matching residential rental properties with foreclosure filings and sending letters to renters, notifying them and offering local resources for assistance in finding new housing.

• The early notification would also give renters a chance to save money needed for the security deposit on a new home and other extra costs, said Mike Piepsny, executive director of the Cleveland Tenants Organization, which will be mailing the foreclosure notices. [...] Paul Herdeg, housing manager with Cuyahoga County's Department of Development, said funding sources also are being sought to lend financial aid to tenants facing eviction.

For more, see Program to notify renters of foreclosure filings (Often aren't aware of foreclosure).

For other posts involving the problems tenants face in rented homes in foreclosure, go here, go here, go here, go here, go here, go here, and go here. TenantRentSkimmingAlpha

More Legal Protections For Chicago Tenants Facing Eviction From Homes In Foreclosure

In Chicago, Illinois, the Chicago Sun Times reports:

• Chicago renters left in the lurch — and evicted without warning — when their landlords face foreclosures would have added protections under a mayoral plan unveiled Thursday. [...] The plan calls for City Hall to expand an emergency rental assistance program to support up to three months of rent and moving expenses for eligible tenants evicted after a landlord’s foreclosure. Pro-bono legal services provided to evicted tenants by the Lawyer’s Committee for Better Housing(1) will be expanded.

• And the city is prepared to launch a tenant outreach program as soon as Gov. Blagojevich signs a bill on his desk that broadens the umbrella of protections for impacted renters. Among other things, the bill guarantees renters a minimum of 90 days’ notice before being thrown out of foreclosed buildings. Currently, some renters get as little as five days’ notice. The bill also requires the sealing of court records so landlords are not unfairly punished when they seek new housing or credit.

For more, see New laws to protect renters from foreclosure.

(1) According to their website, the Lawyer’s Committee for Better Housing's clients are provided an array of services by volunteer attorneys, from settlement negotiations to motion practice to full litigation, depending on the nature of their case; and the group observes that because of their efforts, the landlords’ bar is more easily persuaded to settle their evictions cases in a manner favorable to the tenant rather than continuing litigation. TenantRentSkimmingAlpha