Tenants Badly Affected By Foreclosures

October 30th, 2007 | Tags: Foreclosures

New owners have no time for old tenants. Social activists are giving out red signals of warnings that there are many tricks to dupe the unwary tenants – one being cash-for-keys offer. The new owners are going all out to evict section 8 tenants residing in subsidized houses that have been sold off at foreclosure auctions.

The Metropolitan Boston Housing Partnership is a non-profit group working for the welfare of society. According to a survey they have noted that approximately 13% of all the houses sold at foreclosure auctions in Boston are occupied by section 8 tenants. The majority is in Dorchester.

The Federal section 8 scheme subsidizes rents for needy family. It bridges the gap between the income of the family and market housing rates. These tenants have certain legal rights and can fight eviction proceedings being initiated by new owners. As per law they cannot be thrown out as soon as ownership changes hands. Federal law and state law are at one on this point – section 8 tenants can stay. This clause is helping many families at this hour of crisis when foreclosures are closing in to choke the life breath out of the hapless. When the section 8 lease expires the law expects the owners to prove that by allowing the tenants to stay on the premises the economic interests of the owners are being hampered.

Even those not covered by section 8 have certain rights as tenants. A court approval has to be taken before action can be taken against them.

Despite this legal protection many new owners are intimidating section 8 tenants with eviction. These are nothing but bullying tactics because not all are aware of the law and many lack the fighting power to take the matter up and drag it to the court.

When the strong-arm tactics fail the second line of action taken by the owners is flashing money power. $500 to $1,000 is offered to ease them out of the premises quickly before they become aware of their legal rights. This doling out of cash with an eviction notice is known popularly as cash-for-keys strategy. The idea is to push them out fast before they become aware of the truth.

A third line of approach is to make life impossible for them by not paying water bills and hoping that soon the vital line will be cut off.