Renters Caught Up In Foreclosure Crisis

(CBS)  Adrianna Diharce and her husband Jesse thought they knew the rules of the renting game.

"We've been good renters," Diharce said. "We paid on time."

What they did not know is that the owner of the home they've been renting near Oakland, Calif., wasn't paying her mortgage - and the bank foreclosed on the property at the worst possible time, CBS News correspondent Ben Tracy reports.

"We were shocked. I mean it's just horrible," Diharce said. "I'm about to deliver, you know have another baby and they're about to auction off the house."

"This basically says you have 30 days to leave. What are you going to do?" Tracy asked her.

"I don't know," she said.

Thirty-eight percent of foreclosures now involve rental properties. That's at least 168,000 households nationwide.

In states as Nevada, Illinois and New York, the numbers are even higher.

"In most states, foreclosure itself automatically terminates a tenancy," said housing attorney Judith Liben.

Liben, who works for the Massachusetts Law Reform Institute, said most banks simply won't deal with renters.

"The banks try to get them out as fast as possible, and this happens everywhere," Liben said.

And so brokers representing the banks often offer what's called "cash for keys:" a payoff to get the renter out quickly.

"The offer was $2,500 to leave," Diharce said, within 14 days.

Oakland City Attorney John Russo says many renters get a much worse deal.

"The person gets a notice from the bank saying, 'hello, your rent is now $10,000 a month. If you can't pay it, time to leave.'"

And this is often what happens - you end up with an abandoned, boarded up house that drives down property values in the neighborhood and ironically can make it even harder for the bank to sell.

Families like Diharce's are left with few good options.

"You don't even own the property and you're being faced with foreclosure," she said. "It's horrible."

Especially when you've played by the rules - and still lost.

[wardoglrs]

The Federal Reserve did this and everyone need''s to wake up to it. This is just another Neo con ploy to robb you of your future your freedon and your rights. The Federal reserve is not legal under the constitution. There isnt soppose to be paper money only gold and silver. The Fed Res creats counterfit money. Gold and silver cant be counterfit. And you wont suffer the inflation paper money brings.
Vote Dr Ron Paul he is the only one that will shut this illegal bank down

[forthepeopl1]

Regulators Give Fremont General 60 Day Warning To Raise New Capital Or Sell Bank

this is only the beginning, hang on and take your money out of every bank and credic union and funds and run to hide it all..put under mattress




Last week, the company announced it agreed to sell the servicing rights to some $1.9 billion of its securitized mortgage loans to a subsidiary of Carrington Capital Management LLC for an undisclosed amount.

so i would guess it was penny on the dollar, for all that money...so who said they could sell 1.9 billion for pennys on the dollar???

i would do that to!!!! to keep my home...so why cant we do that????

[jacobcarro]

It is very sad that renters must lose their homes because of the irresponsibility of the owners.

For a unique perspective on the foreclosure crisis, check out, nationalforeclosureblog.blogspot.com

This isn''t spame I just think it is interesting.

[forthepeopl1]

Fielding questions after his speech, Paulson said that "innovation always precedes regulation in our economy" and suggested that oversight needed to catch up. OK PAULSON MY INNVATION IS TO BURN DOWN MY HOUSE,INSTEAD OF GIVEN IT TO THE SCUM BAGS THAT LIED ABOUT THE VALUE..

Once again Paulson defended the government''''''''''''''''''''''''''''''''s role in coming to the aid of Bear Stearns - which has been criticized by some Democrats and others as akin to a federal bailout.

AND 100 MILLION AMERICANS ARE FACEING BANKRUPY, SO WERE IS MY BAILOUT..AND WE DIDN''''''''''''''''''''''''''''''''T LIE ABOUT THE VALUE OF OUR HOMES..THEY DID,


"Bear Stearns found itself facing bankruptcy,"
Paulson said. "The Federal Reserve acted promptly to resolve the Bear Stearns situation and avoid a disorderly wind-down. It is the job of regulators to come together to address times such as this; and we did so. Our focus was the stability and orderliness of our financial markets."

Paulson said the administration will explore ways to help struggling homeowners at risk of losing their homes.

In addition, he rejected the need for a "systemwide solution" to deal with homeowners who have no equity in their home. That''''''''''''''''''''''''''''''''s when one''''''''''''''''''''''''''''''''s mortgage eclipses the value of their home.

Fed Chairman Ben Bernanke recently urged lenders loans.SAYING 30 OR 40 OR EVEN 50 PERCENT REFI IS BETTER THAN A BURN DOWN HOME..

[irispen]

For peace of mind, it seems that a person renting or thinking about renting should check out this web site.

www.checktherental.com

[lemonskink]

Bear Stearns CEO won''t have any problem.

[ranger1948]

Here is some additional advice for renters and home buyers. If you buy a modular homne the banks say they will refinance at a later date if you want a lower percentage rate. I bought one with a floating mortgage and at the three year mark tried to refinance. I was told by the banks that a modular wasn''t considered a regular house and most will not refinance it. Thse that would only offered to refinance 65% of the loan. What good is refinancing 65% of a loan. I had a personal castophe which ran up a medical bill of $450,000, my insurance paid $300,000, the banks wouldn''t work with me and eventually i had to file bankruptcy and gave the house back to the bank. The good news is it is five years later, the bank hasn''t been able to sell the house and the last offer they had was for %67.000. I owed $103,000 on it when i lost it. The bank screwed itself by not working with me and i had excellent credit at the time.

[mcv57]

You can tell that the state and local government is protecting the bank''s interest. Indeed, you can sue the landlord and the bank jointly (for the cost of moving/ relocating) in a breach of contract.

[mcv57]

You can tell that the state and local government is protecting the bank''s interest. Indeed, you can sue the landlord and the bank jointly (for the cost of moving/ relocating) in a breach of contract.

[mcv57]

You can tell that the state and local government is protecting the bank''s interest. Indeed, you can sue the landlord and the bank jointly (for the cost of moving/ relocating) in a breach of contract.