New York State Senator Jeff Klein has come up with a lame-brained idea which will put an even bigger dent in the residential real-estate market
Here's the report as it appeared on the Daily News website:
Keep renters in homes, too, Bronx state Sen. Jeff Klein says
By Robert Gearty
DAILY NEWS STAFF WRITER
Monday, December 22nd 2008, 11:25 PM
As more renters face eviction from foreclosed homes, a Bronx lawmaker wants to cut them a break.
There are 552 bank-initiated evictions pending against renters in city housing courts this month, says state Sen. Jeff Klein (D-Bronx) .
Klein proposed legislation Monday that would give renters in foreclosure evictions more time to find new digs by establishing a 120-day notification period.
In August, Gov. Paterson signed a subprime lending reform bill requiring lenders to give homeowners 90 days' notice before foreclosure proceedings begin.
"The time has come for these lending institutions, these subprime Scrooges, to make sure that not only homeowners can have an opportunity to stay in their homes, but tenants as well," Klein said.
Last month the Daily News spotlighted the problem, finding renters have been given just weeks to relocate, while unscrupulous landlords collect rents for homes they no longer own.
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We're hoping Klein 's idea gets kiboshed by his Senate colleagues.
Foreclosures are, by nature, a lengthy procedure which already take many months -- and, in some instances, years -- to resolve.
Owners and tenants involved in that kind of case are given plenty of legal notice and quite of bit of time to do what needs to get done. And, should an eviction proceeding be necessary, that doesn't happen overnight either. (As everyone who has ever been involved in the process knows, landlord-tenant cases in New York often take months -- not "weeks" -- to wind their way through the court system.)
Of course, adding another six months to the mix will harm those holding the "paper" -- the underlying debt obligation -- and will work to discourage investment in homes and apartment buildings. (It will certainly make those properties a lot more speculative, or "risky," for investors, making it even more difficult to get new loans issued. After all, why would lenders park their cash there, when they can get a better return, or more certainty, elsewhere?)
Savvy readers will note there was no mention by Klein of tenants having to pay "rent" over the course of that six-month "grace" period.
A modern-day "chicken in every pot?" Something for nothing?
You gotta love it!
(When can I expect my bailout money?)
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To download a copy of the the article, please us this link: Renters Needn't Pay Rent
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Our thanks to Steven B. Shapiro, Esq., for bringing this news story to our attention.