Harassment Of Tenants In Foreclosed Homes Continues As Investors Ignore Federal Law

In Bakersfield, California, KGET-TV Channel 17 reports:

• Amber and Tony Moore say their rental was foreclosed on and sold at auction last year. "On the 15th of September we watched the house get sold," said Moore. The Moores obtained a lawyer who assured them they had the right to live out their lease, but eventually they say the harassment got so bad they just decided to give up.

• "They were constantly dropping us a three day notice, constantly threatening us with harassing phone calls, emails, even text messages. Stuff like 'get out," said Moore. "If you're protected by the federal law you're allowed to live out the term of your lease,"(1) said attorney Mark Roy with Greater Bakersfield Legal Assistance.(2) Roy says the only exception to that law are people renting from family or paying way below market value rent, or if the new owner intends to live there.

• But Frank St. Clair with St. Clair Investments, says he buys about a dozen foreclosed properties a month, and he doesn't agree. "It appears that pertains to the banks that are the foreclosing entity. I'm not the foreclosing entity, I'm a third party, so I don't have to honor the lease," said St. Clair. "Well they're 100% wrong," said Treves. "They say that but if they fight us in court they'll lose."

• In fact a renter is taking St. Clair to court over this issue next month. St. Clair says it's the first time anyone has challenged him, but he is confident he'll win. "We have a fairly conservative legal system around here so I feel pretty comfortable with it going that way in court," said St. Clair.

For the story, see Contact 17 Investigation: Renters' rights.

(1) See the Protecting Tenants at Foreclosure Act of 2009, which provides important federal protections for tenants in foreclosed properties, including the right to receive 90 days' notice before being required to leave the property and, in many cases, the right to remain for the length of the tenant's existing lease term.

See also, National Law Center on Homelessness & Poverty, Staying Home: The Rights of Renters Living in Foreclosed Properties.

(2) Greater Bakersfield Legal Assistance (GBLA) is a 501 (c) (3) non-profit organization that offers free legal services in civil matters to low-income persons residing in its service area within Kern County, California.