November 22, 2010 - Yesterday the Phoenix forcible detainer hearings were a joy to watch. As we sat in court we talked with people who had a loan agreement modified successfully, and then 3 days later received notice that their house had sold at trustee sale (foreclosure) . We talked to a tenant that could not reach the new bank owner which had offered her $750 bucks to move within 90 days. She had tried many times unsuccessfully to talk about the offer.
The newest bank scam is to tell tenants they have 90 days to move, and then when in court, the bank will claim there is only a month to month lease. By not talking to the renters directly, the bank is often not in possession of leases which give tenants federal legal rights to remain in their homes until the end of the lease period. Tenants have an automatic 90 day right to remain in home.
If a lease is produced the banks lawyers will claim it is invalid, due to the amount of rent received (have they heard of fair market rental value?) or other technicality is used to invalidate the lease and move renters out of their homes, by denying renter/tenant federal rights. Bank lawyers also use these technicalities to force homeowners to pay higher rent rates than the market value - while fighting foreclosure in quiet title actions.
RENTER OR TENANT RIGHTS AFTER FORECLOSURE-click to read more about rights