Sunday, June 15, 2008

From CNN:

Man Pays $30,000 in rent, faces eviction

LAGUNA HILLS, California (CNN) -- Charles Nelson has paid about $30,000 in rent since moving into a spacious four-bedroom home in August. He was stunned when a real estate agent knocked on his door recently and said the home was in foreclosure.

His landlord had not paid the mortgage since he moved in and the bank is now demanding the house back. Nelson will also lose his $7,700 security deposit.

More than 100 miles away in the working-class city of Palmdale, Fai Nomaaea -- a 35-year-old mother of eight -- can relate. The single mom was cleaning the yard when a man handed her a notice of foreclosure. Like Nelson, she had been paying her rent on time every month.

"It really is a frightening issue for tenants that have no way of knowing until almost the last minute that a landlord is defaulting on a property."

... in many cases, renters want to buy the properties being foreclosed, but the banks force them out anyway.

Nelson knows all about that. He called the bank to offer to buy the home he's renting but was told that he has to move out first and then make a bid. Now, he lives day-to-day, not knowing when he'll have to leave.

"There could be a knock on the door, saying we have 10 days, two weeks. I don't know."

Click here to read entire article.

The lady I sit next to at work is going through this exact thing. Not only is the owner not paying his mortgage, he is in violation of some safety concerns that he's had 6 months to correct. A representative from the city showed up on her day off to inspect the house to see if they had been repaired and he is the one who told her that the man hasn't been paying the mortgage. Last I knew she didn't pay June's rent because she may have to move if the bank is foreclosing.

The terrible part is that this owner just rented to her in late April to have her move in May 1st, knowing that he hadn't been paying the mortgage and probably had no intention to do so. He collected a deposit, 1st and last month's rent and a pet deposit. Even with that cash he most likely didn't use that money to pay on the arrears. That should be a criminal charge in my opinion.

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