Foreclosures Are Leading To Rampant Illegal Evictions

In New Jersey foreclosures are leading to rampant illegal evictions. The state officials want the people to be aware of this fact. The tenant, if he or she is current in payments, cannot be forced out of the house simply because it is in foreclosure. New Jersey is one of the states that has won a name for itself as regards giving protected to tenants of reo homes .

According to Public Advocate Ronald K. Chen, in New Jersey the tenants are given protection during the entire foreclosure proceedings right up to the resale time. The landlords who evict tenants during this time are liable to be charged for civil as well as criminal offense and can be arrested. He can also be penalized for switching off utility lines, changing the locks or tampering with the possessions of the renters. Chen said, “This is a tragedy under any circumstance. Folks don’t know it, but they don’t have to leave.” Realtors and attorneys who are also embroiled in these proceedings are liable to face professional sanctions. The cash-for-keys measure is also illegal. By it tenants hand over the keys and vacate the premises in lieu of money.

Chen in tandem with Steven Goldman who is Banking and Insurance Commissioner has started investigating complaints from tenants about forced evictions. It is however difficult to find out the exact number of tenants being evicted because of foreclosures. However calls are rolling in every day. New Jersey Tenant’s Organization said that nearly 20,000 out of 1.1 million renters have been scorched by foreclosures. One out of every house in New Jersey has been rented out. In Newark, the largest city of the state, two out of three houses have tenants.

New Jersey has witnessed 45% spike in foreclosure postings and will probably be 50,000 before the year draws to a close. In 2007 the state recorded 34,457 foreclosures as against 23,044 in 2006. Laurie Brewer from the office of the advocate said, “This could be the tip of the iceberg. We’ve heard of a few and we know it’s happening.”

Realtors have been instructed to be truthful about the foreclosure status of the houses with their clients. Soon brochures containing the rights of tenants will be distributed in the state so as to help them during and after foreclosures. However tenants have been advised to set aside their monthly rents even if they are unsure about when or where to pay it.