Foreclosure Crisis Catching Renters Off Guard

"We kept thinking that as long as we paid him the rent, we would be all right," says LaToya Hall, who is six months pregnant and now lives in a homeless shelter in Manassas. At right is shelter director Matt Burrell. (By Gerald Martineau -- The Washington Post)
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Because of cases like Hall's, the U.S. House passed a measure last year that would require the new owner of a foreclosure to inform renters at least 90 days before an eviction. If there are more than 90 days left in the lease, the renter could stay for up to six months.

Some jurisdictions are finding their own remedies, including Baltimore. Starting Monday, tenants in foreclosed-on homes must get at least 14 days notice -- by certified mail and first-class mail -- before eviction.

A week before the eviction, the sheriff's office must post a written notice on the door. "It's a good first step, but two weeks is not enough time to find a new place to live when the affordable rental market is tight," said Sally Scott, co-chairman of the Baltimore Homeownership Preservation Coalition.

That's as good as it gets for tenants in Maryland, said Kathleen S. Skullney, a foreclosure lawyer at the Legal Aid Bureau in Baltimore. In limited circumstances, a lease may survive a foreclosure, but otherwise, the new owners are not obligated to contact renters in advance. Many limit their efforts to dealing with borrowers and courts.

Once the foreclosure is approved and eviction is legally allowed, the renter may have to leave on the spot.

"The renter has no defense at that point," Skullney said. "If there ever was an overlooked and uncontemplated consequence of the foreclosure crisis, this is it."

Having been through this twice, Austin understands that all too well. He's looking for another rental, and hopes he won't land up on the street first. He sent a letter to the lender that repossessed the Bowie house, asking to stay a while, he said. "I've gotten no response."