Renters Get Evicted Due To Foreclosures

May 1st, 2008 | Tags: Foreclosure

The renters get evicted due to foreclosures. On one hand, contractor Jessie Johnson rebuilt the houses in Lousiana which where damaged in Hurricane Katrina. But on the other hand, his own house has been foreclosed on- he faces the possibility of losing his own home!

In Houston, the house owners are not the only ones suffering a loss from rising foreclosures. Renters get evicted due to foreclosures.

There were some investors who made a profit by selling the property after getting low teaser rates on mortgages. This is adding to the rising cases of foreclosures. Alderman explains that there is an entirely new economic system. Everyone thinks they can manage their finances. But this is not true. In spite of renting their houses they cannot afford it. So they keep the rental payment for themselves and the house gets foreclosed.

Most of the time, the renters are the ones who suffer when the house is bought out of foreclosure-renters get evicted due to foreclosures. There are fresh leases for the new owners and they do not have to continue with the leases made by the previous owner, explained a legal aid attorney in Houston, Sapna Aiyer.

When the tenants are going to be evicted depends on whether the rent has been paid or not. If the new owner decides to carry on with the previous lease and if the tenants are up-to-date with their rents, then they are given a months notice. Otherwise, only three days’ notice is given after which the lender can file a case for eviction. The hearing takes place in a week. If the verdict is against the renters then they have five days to appeal. If they don’t do so, then the lender can evict them immediately with the help of a Writ of Possession.

The eviction process has started. Johnson’s landlady said that his lease was due to end in February. She did not want to renew it. She was getting much less than her mortgage payment. In March, the house went into foreclosure. The Bank of New York has decided to evict Johnson. But now things are looking up. Johnson is trying to get a loan approved of so that he can buy the house. Then he does not have to uproot his family. It’s not possible for the company to let out the property back to him since that is not their business.