President Barack Obama’s $75 billion foreclosure program has been applauded for its efforts to help troubled homeowners, stabilize the housing market and ultimately help rehabilitate the country’s economy. But some groups are disappointed because of the miniscule help allotted to adversely affected renters. Obama’s program set aside only two percent of the foreclosure fund to renters although about 20 percent of homes in foreclosure listings are rental properties.
Some analysts explained that renters were probably overlooked and were not given much focus because they are renting residential properties bought by speculators and irresponsible investors who did not keep up with payments although they were receiving rental payments from the renters.
The case of Kamilah Taylor and her young children is an example of a responsible family that became victim of properties that suddenly became included in foreclosure listings. Taylor paid her rentals religiously, maintained the property and got along well with neighbors. All the same, Taylor and her children were forced out of the property when the landlord failed to pay his loan and the property was included in foreclosure listings. Her problems were also compounded when her landlord failed to return her security deposit.
California laws require landlords to return the deposits of their tenants, but when landlords refuse to return the deposits, most tenants could not do anything. They do not have money to file lawsuits and they do not have the time to pursue anything other than to find another place for their families.
Taylor was still more fortunate than most other renters because when her landlord failed to return her security deposit, The Chronicle’s Season of Sharing Fund in California helped her financially to enable her to rent another property. The fund has been helping people like Taylor adversely affected by long foreclosure listings and other effects of the economic downturn.
In California, foreclosures wipe out the rights of renters. The lenders, after adding foreclosed residential properties to foreclosure listings, either offer new lease contracts to the renters or force them out on two month’s notice. Lenders however usually want to focus on lending so they prefer evicting the renters who are almost always unprepared to transfer to another place.
In light of the difficult situations of renters, Obama’s administration need to include them in efforts to help Americans displaced by the rising number of homes added to listings of foreclosure.
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HUD Fair Housing Equal Opportunity
