My landlords owned a nice house here in Newark, CA that they bought for $220K in 1999. They owed $176K and if they hadn't borrowed more, they would be close to paying it off. The bank got them to borrow more money to improve the house as the value "rose" during the bubble, and after 8 refinances with 3 different banks they owed $378K. They lost the house and I ended up renting it on a month-to-month agreement while they waited for the bank to foreclose. The injustice that they suffered is pretty well-known; Michael Moore made a movie about it, but the injustice that I'm suffering is something that I wasn't aware of until it happened to me. The banks and their government counterparts may be kicking out tenants from foreclosed houses and then leaving the houses vacant, as a widespread policy, even if the tenants are willing to continue paying rent and are taking good care of the houses. I have a theory about why they may be doing this, but regardless of the reason, if it is true, then it is an interesting story. The lawyer who is kicking me out told me that he does these cases every day and he's never seen them let someone continue renting; he works for Freddie Mac and Fannie Mae and he said that they both kick out every tenant in every house that they own. I know that they are evicting me and my neighbors for no good reason, and I want to investigate further and find out how many other people they are doing this to.
Freddie Mac ended up owning my house, and coincidentally they also own the house next door to mine. Not long after they took over my house, they did an eviction on the borrowers (who haven't lived here for years). A process server claimed under penalty of perjury that he served a Hispanic man at my house while I was at work. By the time I found out about the eviction, it had already been ordered by a judge. The attorney handling the eviction mailed a copy of the eviction order to the house and I called them, and let them know that I was a tenant, not a borrower (they can evict a borrower with 3 days notice; a tenant requires 90 days). I asked them if I could just continue paying rent, and they agreed to stop the eviction and let me rent, but they actually didn't stop the eviction, just kept it on hold, and they would never sign a rental agreement. They jerked me around for months (meanwhile Chase Bank was also claiming to own the house and trying to collect rent from me), and eventually tried to execute the original eviction of the owners. I found a note on my gate advising me that the Sheriff would be evicting me March 19th.
I figured out how to file an ex parte petition to delay the eviction, and then I filed a motion to quash service and a motion to establish right of possession. The judge ruled on my motion to establish right of possession and granted it because I successfully questioned the proof of service, so I have the upper hand for now, but it seems to be a Pyrrhic victory because Freddie's lawyer says that he will refile the eviction and have me out within 90 days unless I accept his offer to move out voluntarily in 90 days.
If this really is Freddie/Fannie's official policy, that they don't allow tenants in houses that they end up with, then I will probably not be able to stay here in my home, and that would be disappointing because I am very attached to this place. It has 8 fruit trees, and a nice garden, and I am happy here. If it isn't an official policy (or if I can get them to change it) then I might be able to continue renting here. Based on statements made by their lawyers, I think that they may be only renting in areas (like Berkeley) where local laws prohibit kicking out tenants for no reason.
The house next door to mine is a 3-unit complex, and one of the units has been vacant for years. It was vacant when Freddie took over the property in 2010 and it has been vacant ever since. The other two units were rented for a long time, but a few months ago Freddie kicked out the people in back and their place turned into a huge garbage dump. They left a mess when they moved out, and nobody cleaned it up for months, and homeless people started using it as a recycling sorting area, and it was pretty ugly. They sent someone to clean it up recently, after I told the lawyers about the mess and sent them pictures of it. About the same time they stopped cashing the checks of the tenants in the 3rd unit, and now they are sending them eviction notices. So out of 4 Freddie-owned units on this block, 2 are vacant and 2 are being cleared out for no reason. Here's a timeline of events during the eviction; I have documentation for most of these events:
5/25/2012: A "Notice of Trustee's Sale" is thrown over my fence from "James Matthews" at "Trustee Corp" advising me that Trustee Corps will be auctioning my house 7/2/2012 on behalf of Washington Mutual Bank. (Exhibit A)
5/30/2012: A "Notice of Sale" is taped to my gate from "N.C.L.G. Team" advising me that Trustee Corps will be auctioning my house 7/2/2012 on behalf of Chase Bank. (Exhibit B)
6/1/2012: I pay rent to my former landlord for the last time. (Exhibit C)
7/17/2012: A notice is hung on my gate from "Chase Bank" advising me to call immediately. I call 800-848-9380 and am advised that Chase will be offering me cash for keys. I explain that I want to continue paying rent, and they say that they will get back to me. A few days later I receive a phone call from someone who collects information. After a few days of discussion they offer to send a rental agreement. I ask them to send proof that Chase owns the property, along with the rental agreement. (Exhibit D)
7/28/2012: A notice is taped to my gate from "Pyramid Properties" advising me that they are offering cash for keys and a rental program on behalf of Freddie Mac. I call and advise them that I would like to start the rental program, and they say that they will get back to me. (Exhibit E)
8/3/2012: I receive a letter from "Superior Court of California" advising me of an eviction action filed 8/1/2012 against my landlord Gilbert Lunas. (Exhibit F)
Later in August: My garbage bill is taken over by Pyramid Properties, but they don't pay it. It still comes to my house and nobody is paying it. I call the city and they advise me that I should not pay the bill because it isn't in my name. I call Pyramid a couple of times but they never get back to me. (Exhibit G)
8/28/2012: I receive postal mail from "Malcolm & Cisneros" advising me that an owner eviction has been performed and that I must vacate the premises. (Exhibit H)
8/28/2012: I call Malcolm and Cisneros at 949-252-9400 and speak with Angela at x357. I explain that they are evicting me illegally and she advises me that I am still going to be evicted. I send certified letters and faxes to advise Malcolm and Cisneros that I am a tenant, not an owner, and that an owner eviction cannot be legally performed. I call several times and explain to Angela and others at M&C that I want to continue paying rent, and after several days I am advised that I have been transferred to the "Rental Department" and that I will be contacted to sign a rental agreement. (Exhibit I)
9/2012: I get a high water bill, and after contacting the water company I find that the property has a water leak. They advise me to contact the property owner. I try contacting Pyramid but they don't respond so I fix the leak myself (digging 40+ hours over the next few months to find it). My water bills caused by the leak add up to several hundred dollars which I am paying at the rate of $100 per month.
10/23/2012: Chase leaves a notice on my gate asking me to call, but they don't provide a phone number. (Exhibit J)
10/24/2012: A notice is taped to my gate from "Steve Clegg" at Real Property Management. It is a 72-hour notice advising me that Steve has been attempting to contact me, and has not been able to reach me. (Exhibit K)
10/24/2012: I call Steve at RPM and we exchange some emails. At one point he emails to apologize for not returning my phone calls, saying that he is out of town for the week. (Exhibit L)
11/14/2012: Steve asks me for copies of my rent receipts. I fax them to 650-588-5112. I call a few days later but am not able to reach Steve. (Exhibit M)
11/20/2012: Chase sends someone out to take pictures of the property. She hands me a notice asking me to contact Chase. I call Chase again and advise them that I am still waiting for proof of ownership and a rental agreement. They say that they will get back to me. (Exhibit N)
11/26/2012: I receive a letter advising me that my property is no longer managed by RPM Oakland and referring me to an office in South San Francisco. I call that office and they say that they will get back to me after the transfer goes through. (Exhibit O)
11/29/2012: A business card is taped to my gate from Real Estate Agent Jennifer Haus asking me to call. I call and Jen advises me that she is going to be selling the property. She cannot tell me whether she is selling it for Chase or Freddie Mac, or another bank. (Exhibit P)
12/3/2012: I receive a letter from Steve Clegg at Real Property Management, but Steve's name has been scratched out and replaced with a handwritten name that is not readable. The letter is a "48-hour notice to comply" which advises me that RPM has been unable to contact me. I call and leave a message and eventually connect with someone named Ritch. (Exhibit Q)
12/18/2012: Ritch advises me that the receipts I faxed to Steve have been lost, and asks me to fax them again. I fax them to 650-588-5112. I call Ritch twice over the next few days but he does not respond. (Exhibit R)
1/10/2013: I receive another "48-hour notice" advising me that RPM has been unable to contact me. I call Ritch and ask him what is going on and he apologizes for the mixup. He advises me that he received my rent receipts and that he is ready to sign a rental agreement. (Exhibit S)
1/14/2013: Ritch sends me an email with a PDF attachment, and asks me to call the phone number at the bottom of the attachment to get proof of ownership. I call 801-784-5400 and am advised that I have reached the corporate office, and that my property has been transferred to the "Eviction department." They refer me to Karina Amaro, at the eviction attorney. I speak with her multiple times over the next few days and she advises me that RPM is claiming that I am unresponsive. I explain that it is RPM who is unresponsive and we agree that I will email her a timeline of events. (Exhibit T)
1/18/2013: A doorhanger is placed on my gate from Chase advising me that they would like to work with me to keep me in the home. I call 800-848-9380 but am not able to reach anyone. (Exhibit U)
1/20/2013: I email the timeline of events to Karina Amaro. (Exhibit V)
1/22/2013: Karina replies to let me know that she is contacting Freddie Mac about the matter. (Exhibit W)
1/24/2013: Lorena Brown at M&C emails to advise me that I am back in the rental program and refers me to Ritch Richetti at RPM. I leave a voicemail for Ritch. (Exhibit X)
1/25/2013: Ritch calls me and we agree to meet on Tuesday 1/29 for a property inspection. I email him to confirm. (Exhibit Y)
1/29/2013: Ritch comes to the house to do an inspection and I show him the hole in the roof. I show him the Chase letters and explain that multiple agents are offering to rent the property on behalf of multiple banks, and ask for proof that his client owns the property.
2/4/2013: Malcolm & Cisneros sends me a letter addressed "To All Occupants" advising me that they will pay me $3500 to move out by April 2nd, 2013. (Exhibit Z)
2/5/2013: Lorena Brown emails to advise me that Freddie Mac will not be leasing the property due to the condition it's in. (Exhibit AA)
3/1/2013: Lorena Brown emails me a "Trustee's Deed Upon Sale" purporting to prove ownership of the property. (Exhibit BB)
3/13/2013: A note is placed on my gate advising me that the sheriff will be evicting me 3/19/2013 based on the August eviction order. (Exhibit CC)