January - March 2009
Tenants Together Foreclosure Hotline for Tenants - 415.495.8012
March 12, 2009 —
City sues major banks, local agents to stop illegal evictions at
foreclosed properties
Oakland’s City Attorney has filed five law suits against JPMorgan Chase
Bank, EMC Mortgage Corporation, Fidelity National Financial and others
for violating Oakland’s Just Cause ordinance by evicting tenants without
just cause and giving improper notice. Read the complaints which
seek injunctive relief and damages
here.
See also
City Attorney's Guideline for Tenants' Rights in Foreclosed Housing
(PDF).
March 6, 2009 —
Fannie Mae Extends Eviction Suspension Through March 31
Fannie Mae extends the suspension of all eviction proceedings through
March 31, 2009 as it implements the Home Affordable Refinance and Home
Affordable Modification initiatives as part of the Obama
Administration's Making Home Affordable program. A
foreclosure sale may not occur on any Fannie Mae loan until the loan
servicer verifies that the borrower is ineligible for a Home Affordable
Modification and all other foreclosure prevention alternatives have been
exhausted.
eFannieMae.com
contains materials for loan servicers, attorneys and others in the mortgage
industry. For example, its requirements for Eviction Halt Extension,
Announcement 09/05 are
here.
March 5, 2009 —
Freddie Mac Officially Launches REO Rental Initiative
For Tenants, Owner-Occupants After Foreclosure; Freddie Mac Continues
Suspension of Evictions Through April 1, 2009
Freddie Mac has launched its new REO Rental Initiative giving qualified
tenants and former owners the option to lease their recently foreclosed
properties on a month-to-month basis. The REO Rental Initiative will be
managed by HomeSteps®, Freddie Mac's national real estate unit, and
implemented through several national property management firms. It will
continue to suspend all eviction actions until April 1, 2009 to ensure
there is ample time for current occupants to learn about the options
available to them under the new initiative.
March 2, 2009 — Senator Lowenthal Introduces
SB 120
to Protect Tenants from Utility Shutoffs and to Protect Security
Deposits
Sponsored by the Western Center on Law and Poverty, this bill protects
tenants in foreclosure situations by preventing utility shut-offs and by
ensuring the fair return of security deposits to tenants after
foreclosures. This bill is virtually identical to
AB 2586 cited
by Foreclosure Watch
July-December 2008,
also sponsored by the Western Center on Law and Poverty, which passed
the legislature this year, but was vetoed by the Governor.
February 25, 2009 — Without Just Cause: A 50-State Review of the (Lack
of) Rights of Tenants in Foreclosure A Report by the National Law Center
on Homelessness & Poverty & National Low Income Housing Coalition
(PDF)
This report surveys foreclosed tenant rights in the states. It also
reports on a Greater Hartford Legal Aid challenge to tenant eviction
under § 109(b) of Emergency Economic Stabilization Act of 2008 (EESA) —
TARP benefits — by a tenant in a Fannie Mae property. She argued that
the EESA requires Treasury to coordinate with the Fannie Mae to permit
tenants to remain in their homes post-foreclosure and that the burden is
on Fannie Mae to allege a good cause for the eviction. A decision in
that case is pending. It may be possible to extend this reasoning, says
the Report, to other federal entities or financial institutions that
have availed themselves of TARP benefits under the EESA.
Watch
“Renters in Crisis: Issues and Solutions”
National Law Center on
Homelessness & Poverty & National Low Income Housing Coalition introduce
“Without Just Cause” Report on C-Span and discuss the challenges facing
renters who are living in foreclosed homes. At the beginning, a panelist
presents very briefly useful facts about lack of rental housing and
correlation with homelessness.
February 24, 2009 - Statewide Organization Launches Foreclosure Hotline
for Tenants - 415.495.8012.
Tenants Together,
California's Statewide Organization for Renters' Rights,
is launching a new statewide
hotline
for tenants in foreclosure situations. While
foreclosures extinguish most leases, California tenants are generally
entitled to a 60-day notice to vacate in foreclosure situations. The
60-day notice requirement became law in July 2008, but many owners still
do not comply with it. In cities with local "just cause" eviction
protections, such as Los Angeles, Santa Monica, Oakland and San
Francisco, most tenants are not legally required to move as a result of
a foreclosure, but many owners ignore this limitation and seek to evict
anyway.
Hotline volunteers will assist in many ways, including helping tenants:
• Find out if a particular rental property is in foreclosure
• Identify the new owner after a foreclosure sale
• Learn about what to expect as the property goes through foreclosure
• Connect with local activists engaged in anti-eviction organizing
• Locate organizations that provide legal representation for tenants in
foreclosures
• Keep utilities on and get repairs done in all stages of the
foreclosure process
• Protect and recover security deposits
• Share tenant foreclosure stories with media, policymakers and the
public
• Report illegal conduct to local law enforcement agencies and officials
• Stand up to abusive and unfair conduct during the foreclosure process
February 23, 2009
Security deposits should be treated as automatic liens
Data on unlawful withholding of security deposits is scarce, but
anecdotal evidence indicates that it is a serious problem. Authors argue
that security deposits should be treated as automatic liens on the
dwellings rented. These "tenants' liens" would work like mechanics'
liens and would be given first priority at foreclosure sale, ahead of
the mortgage. These liens would ensure that tenants are paid when the
property is sold. See
SB 120 cited above
(March 2).
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