Home Brokers, Banks Sued For Illegal Evictions

Oakland City Attorney John Russo has filed several lawsuits against home brokers and banks for allegedly forcing out tenants in foreclosed properties. According to the lawsuits filed by Russo before the Alameda County Superior Court, these tenants who were evicted by home brokers and banks have diligently paid their monthly rent and never violated any rules.

Russo said that tenants who were illegally evicted received wrongful eviction notices which were violation of the city’s law and common decency.

The city had passed a law in 2002 which required landlords to explain to their tenants why they are going to be evicted. The law also required landlords to advise their tenants to seek counsel from the city’s rent board.

Non-payment of monthly rent is a legal eviction cause. But not on the case of tenants whose lawsuits against home brokers and banks were filed by Russo.

The defendants include Fidelity National Financial, JPMorgan Chase and subsidiary companies and home brokers.

Russo said that prosecuting tenants have been given eviction notices with cash offers that failed to cover the normal costs of moving. He explained that many home brokers and banks want renters in foreclosed homes to move out before they put the properties on the market.

Real estate brokers are having a field day in the foreclosure market with the number of foreclosure filings in California reaching 80,755 in February 2008, a 5 percent increase from the previous month.

California has become a haven for homes brokers who see growing business opportunities in the state’s foreclosure market following the 51 percent increased in the foreclosure activity in the state from February 2008.

However, in their haste to sell foreclosed properties to immediately recover their investments, home brokers and banks have violated the rights of tenants who diligently pay their monthly rent.

During a news conference announcing the filing of lawsuits on several banks and home real estate brokers, Russo presented a letter from Chase Home Finance LLC informing a property owner of the company’s policy to keep its properties unoccupied until sold. A homes broker wrote the letter on behalf of Chase Home Finance.

Russo also presented Smart Choice Realty’s letter threatening to lock out tenants from a property within 24 hours.

One of the real estate brokers cited by Russo in his wrongful eviction lawsuit is Kenny Session, host of a local television real estate program. Session explained that he never violated the city’s just-cause eviction, adding that he is an advocate for Oakland.

This entry was posted on Friday, April 17th, 2009 at 8:32 am and is filed under Real Estate Brokers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.