Long Island Renters Suffer From Lender And Tax Foreclosures
On Long Island, tenants are being forced out of their rental apartments because their units have been foreclosed by mortgage banks, according to local and nonprofit officials. The renters have been paying faithfully their monthly rent, but their landlords have defaulted on their loans. Their case can be worse than the situations of persons who are losing their homes to tax foreclosures.
At least in tax foreclosures, the owners know far in advance that tax foreclosures would happen although tax foreclosures are more painful because it involves ownership issues. The renters come to know only of lender foreclosures when they are notified to vacate the premises.
The situation is especially hard on families with children going to school. On Long Island, it is difficult to find another apartment on short notice because of the scarcity of affordable units in the area. Some parents have approached the landlord-renter court for the extension of their rentals to prevent their children from unnecessary distractions and absences.
Housing advocates have been calling on lenders to permit renters stay in the foreclosed homes for their additional income. As they earn rental income, they would also protect the property from vandalism, help the neighborhood by preventing blight and, greatest of all, help families and children from being thrown into homelessness situations.
But mortgage lenders said they are not prepared for rental operations. Wells Fargo's spokesperson Debora Flume explained the operations of rentals, which include rent management and property maintenance, are not in line with their operations as a mortgage servicer.
Dave Guzzetta, owner of broker American Way Real Estate, related he has seen renters occupying 30 percent of properties foreclosed by the banks that he represents. He usually negotiates with them, offering up to $1,500 in cash and rent-free weeks to persuade them to commit to a move-out deadline.
Since the start of the year, about 40 renters have asked for help from the Nassau County Office of Housing and Homeless Services. In Suffolk County, nonprofit leaders have also seen an increase in renters moving out because of lender foreclosures. It is not known if there are renters moving out because of tax foreclosures.
Under President Obama's American Recovery and Reinvestment Act, renters are given aid through a $3.5 billion allocation for emergency shelters. Vouchers will be given for communities to use. Housing advocates hope that help will also be given to renters who usually are not eligible for public assistance and for persons losing homes to tax foreclosures.
At least in tax foreclosures, the owners know far in advance that tax foreclosures would happen although tax foreclosures are more painful because it involves ownership issues. The renters come to know only of lender foreclosures when they are notified to vacate the premises.
The situation is especially hard on families with children going to school. On Long Island, it is difficult to find another apartment on short notice because of the scarcity of affordable units in the area. Some parents have approached the landlord-renter court for the extension of their rentals to prevent their children from unnecessary distractions and absences.
Housing advocates have been calling on lenders to permit renters stay in the foreclosed homes for their additional income. As they earn rental income, they would also protect the property from vandalism, help the neighborhood by preventing blight and, greatest of all, help families and children from being thrown into homelessness situations.
But mortgage lenders said they are not prepared for rental operations. Wells Fargo's spokesperson Debora Flume explained the operations of rentals, which include rent management and property maintenance, are not in line with their operations as a mortgage servicer.
Dave Guzzetta, owner of broker American Way Real Estate, related he has seen renters occupying 30 percent of properties foreclosed by the banks that he represents. He usually negotiates with them, offering up to $1,500 in cash and rent-free weeks to persuade them to commit to a move-out deadline.
Since the start of the year, about 40 renters have asked for help from the Nassau County Office of Housing and Homeless Services. In Suffolk County, nonprofit leaders have also seen an increase in renters moving out because of lender foreclosures. It is not known if there are renters moving out because of tax foreclosures.
Under President Obama's American Recovery and Reinvestment Act, renters are given aid through a $3.5 billion allocation for emergency shelters. Vouchers will be given for communities to use. Housing advocates hope that help will also be given to renters who usually are not eligible for public assistance and for persons losing homes to tax foreclosures.
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