Are banks using deceptive eviction practices?
It is no secret that lenders’ foreclosure practices have been placed under the magnifying glass since the recent revelation that the banks’ use of robosigners called into question the validity of millions of foreclosures throughout the United States. Recent news out of Boston focuses on a ‘host’ of deceptive practices banks are using in order to entice people to vacate their property. Lenders contract local real estate agents or property asset managers to go door to door and tell occupants that they have to leave the house. Many of these agents fail to advise the individuals of their legal rights to remain in the property and offer the occupants a one time take-it -or leave-it ‘cash for keys’ offer, where, in exchange for a small payment, the individuals agree to vacate the property and relinquish all legal rights to remain in the home. Once the eviction documents arrive and the homeowner seeks legal counsel it is often too late because they already signed away their right to contest the eviction. In Boston, local community groups and law students have launched a grassroots effort to prevent lenders from using these defective practices. The groups are going door to door and are holding weekly public meetings in order to inform individuals of their legal right to remain in their home. It appears that lenders are finally taking notice. In the past couple of months banks have paid out hundreds of thousands of dollars and some individuals have even been able to re-purchase their home at current market values with the assistance of non-profit lenders.
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