subprime hits my office mate...

[Javaman]

So next to me sits my friend. A single divorced mom of 3 kids who never ever received any child support from her dead beat ex.

She doesn't have a high paying job and has to live in Section 8 housing.

So recently she moved into a house after years of living in apartments with her kids. Granted she's still renting but, she likes having the yard for her kids.

Yesterday, she gets a notice on her front door that she has on week to move out.

Why you ask? Missed rent? nope. broke a rule in the renters agreement? nope.

The bastard renter defaulted on his loan and went into foreclosure.

She is now trying to get a few more weeks squeezed out so she can at least spend Christmas with her kids and not having to pack to leave.

Ain't that a fucking Merry Christmas, huh?

[AlCzervik]

1. same thing right next door to me, people moved in, i thought they owned but they were renting

they were there for 8 months when the owner went into foreclosure so they had to move out, they went to live with the wife's parents until they can figure out what to do.

[Ganja Ninja]

2. “Have they no refuge or resource?”

“Are there no prisons!”
“Are there no workhouses?”

Not in Dick Cheney's Amerika!

[PassingFair]

6. Boot Straps!

Can't they just climb up those into something else?

:sarcasm:

[Whisp]

15. damn rights. there's always room in the upper 10%

lazy sods.
:sarcasm:

[sandnsea]

3. I bought a house like that once

The owner went into foreclosure and I assumed the loan. It was an old FHA assumable, I don't know if they still do that. Anyway, maybe she should contact HUD. There are programs to help subsidize low income mortgages, just the same as they do with Section 8.

[leftyladyfrommo]

4. That is happening all over. n/t

[DaveJ]

5. I presume she's losing any deposit she might have paid too.

It's utterly ridiculous that homes are treated as investments and not as essential needs. Home loans should be as easy to get as students loans are, low interest, barely any credit check, etc, and it she be hard as hell to take a home away from anyone as long as they are making payments. Of course I'm sure that won't happen at least in my lifetime.

[flvegan]

7. What happened to Service of Process?

She should have been Served before evicted.

[Javaman]

8. She got the notice on her door, she has one week to vacate. nt

[Clark2008]

18. She needs to file a notice with the courts.

In my state, a renter can buy up to 90 days by contesting.

It may cost her a filing fee - perhaps your office can help with that cost?

What state are you in? You need to look into some renters rights. I'm in Tennessee and I know that if a red state like mine has renters rights laws, any state would.

[Javaman]

19. She has contacted the case worker and right now things are on hold till after the first of the year.

after christmas, she is going to court to see what needs to be done.

[Geoff R. Casavant]

13. Posting the notice is the usual first step.

I expect actual eviction proceedings have not been started yet, but will be if she doesn't move out, and she will get formal service of process (however that is defined in eviction proceedings in that state) at that time.

[backscatter712]

9. Call the foreclosing bank?

It probably wouldn't hurt.

Just have her ask herself what's in it for them?

I've known a person in that situation that negotiated with the bank and was able to stay in the place for cheap after the foreclosure. The bank still had to auction the property off, but it took time to set that up, and the place, of course, needed maintenance. The bank agreed to let my friend rent directly from them instead of the original renter, for dirt cheap, with the stipulation that they help maintain the place - mow the lawn, keep it looking nice, so it would be worth more when it was sold.

I don't know if banks will still agree to that kind of arrangement though.

[JuniperLea]

10. You beat me to it!

Yes, by all means! Banks don't like being in the real estate business, and she has a good chance the bank is willing to take her money while it's on the market... which will be a very, very long time.

I'm betting she won't have to deal with many lookie-loos either... loans are very hard to come by now... as they should have been all along.

[sinkingfeeling]

12. Problem is that very few sub-prime mortgages are held by the lender that made the loan.

There was a piece on ABC News this week about a single mother whose payment is to jump over $800 a month and she wanted to refinance the loan. She attempted to contact the mortgage holder, went through about 5 levels, and found that it was held now by some investment group which will not talk to nor respond to home owners at all!

[AngryAmish]

11. That's illegal

Can't kick a tenant out during a foreclosure.

[Geoff R. Casavant]

14. In addition to the options recommended by others here . . .

. . . I would add she might consider suing her erstwhile landlord for the costs of moving and finding another place to live, as well as any increase in rent if she was not a month to month tenant, and for the return of her security deposit. Plus, in landlord-tenant disputes, you can also sue for attorney fees as well. Then if she wins, she can seize other properties owned by the landlord to satisfy the judgment.

[walldude]

16. Same story here..

Neighbors and good friends had to move because the landlords house was foreclosed on and the landlord had to move into her rental property. They were given a month at least but damn...

[Lex]

17. If she's under a lease, the foreclosing bank must honor it

as well as any new purchaser at foreclosure must honor it.

If she's under a month-to-month, the statutory minimum notice must be given to her as a lessee.


None of those rules are suspended by a foreclosure action.