Surprise Evictions Without Compassion
Many vulture investors swoop in and buy homes without the home owner knowing it has gone to auction and David Schweikert is no exception. The same stories are repeated across the country. The home owner has been working with their lender on a home modification and believes they will be able to keep their house. Then out of the blue the home owner is served an eviction notice from the new owner and is given only a few days before they are out on the street.
Many renters are also finding themselves facing eviction because the landlord lost the house to foreclosure. While it is not legal to evict a tenant with a valid lease and on time rent payments, many tenants don't know their rights and are intimidated by threats of court action. Many unscrupulous investors exploit this fact, including David Schweikert.
Schweikert Evicted a Home Owner Waiting for a Loan Modification
Schweikert's company bought a house at auction on November 5, 2009. The home owner was in the process of a loan modification and was not notified that the house had gone to auction. Schweikert's company gave him 5 days to get out. The owner fought the eviction in court but was ultimately no match for the vulture investor firm. [see Swartz & Brough Inc. vs. Rene Mauricio Rodriguez Judicial Notice Page 2]
Families everywhere are shocked to find their home was sold at auction without prior notification
- And some homeowners still in the process of seeking a loan modification with their lenders can be shocked to learn their home has been sold at a foreclosure auction when the new owner arrives to kick them out. [Arizona Republic, March 7, 2010]
- Real estate experts who are part of the program have stated that some homeowners who lose their homes to bank or Fannie Mae foreclosures cannot be blamed for what happened. In some instances, experts revealed that it is the bank that delays the loan modification even though modification has already been filed.
- Experts say it's not uncommon these days for mortgage companies to auction off homes of people who are behind on their payments, without telling them or without giving much notice.
- Chase Bank approved loan modification for AZ homeowner and still foreclosed on the home
- Owners say their Boise home was sold without their knowledge [Idaho Statesman, April 7, 2010]
Schweikert Tried to Unlawfully Evict a Tenant
In September 2009, Schweikert's company served an illegal eviction notice to a tenant of a home just purchased at a foreclosure auction giving her 5 days to leave. Under the Protecting Tenants Foreclosure Act a tenant can stay in the home for 90 days or until the end of a lease should one exist. Not only was this action illegal but the eviction notice was given to the tenant's child, a 12 year old boy. Unfortunately for Schweikert, this tenant was well aware of her rights. She argued her case and won. [See Sheridan Equities Holdings vs. Maria Rodriguez, 2009]
Illegal Evictions are Common in Rental Foreclosures
- But tenant advocacy groups charge that lender representatives, including some unscrupulous real estate agents, have been preying on tenants' ignorance. They pressure renters by sending them misleading letters that drive some out. [CNNMoney.com, February 18, 2010]
- Legal aid lawyers said that the illegal evictions have been occurring regularly since last spring, when a federal law took effect protecting renters from new owners who might pressure them to move, even though their former landlord's troubles had nothing to do with their tenancy. [Connecticut Post, February 1, 2010]
- It's not only homeowners who are under pressure from the real estate market's slow recovery. Renters are experiencing it, too. But in their case, it's often property owners who are applying it, in violation of a law passed last year by President Obama under the Helping Families Save Their Homes Act.
