It was a bolt from the blue for renter Adriana Diharce when she got a letter regarding trustee sale. With two children and another on the way she found herself at deep sea unable to contact the landlady who was sitting with her security deposit. As a tenant she has rights would have to move out pronto without fuss or frown. Adriana is not alone – there are many like her sailing in the same boat.

Last year 11,000 houses in the Bay Area (Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma) were repossessed by banks. One fifth had non-resident owners. In such circumstances the tenants practically have no legal rights because the tenancy agreement was with somebody else and not with the lenders honing in for their pound of flesh. If the city has rent control laws then they are covered by eviction rules. State law generally requires a notice of 30 days to be served.

Last month a bill asking for 60 days notice from banks was narrowly defeated. It also outlined that the lenders would have had to give four months notice before increase of mortgage payments by more than 10%. At the federal level similar laws are waiting to be passed. As yet no statistics has been drawn up about the number of renters affected by foreclosures. But indications are that the numbers will undoubtedly be high. More stories are coming in about renters being offered cash if they move out within 10 days without fuss. If the tenants do not comply then they are threatened with eviction.

The office of the Attorney General of the city is drawing up rules that banks are to abide by when dealing with tenants. Top priority is being given to the protection of tenants who have done nothing but pay rent regularly. Oakland has rent control laws and this gives the tenants some protection. But all sorts of tricks are employed by the agents to get the house empty. A vacant house fetches a better price. The agent first tells the renter that rent does not have to be paid but some months later they descend with a quit notice or the alternative of paying a heavy accumulated amount. The foreclosing banks do not care to know about the local laws regarding tenants. The system that works is known as cash-for keys – or a upfront payment to get the house cleared.

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