Officials acting to protect tenants

Monday, December 08, 2008
By PAUL KOEPP
JOURNAL STAFF WRITER

Lawmakers and state officials are looking for ways to protect tenants in foreclosed buildings from the "cash for keys" offers that are scaring many people out of their homes.

The notices, which are popping up more often in Hudson County and other areas hit hard by foreclosures, tell the tenants they will be kicked out if they do not take cash to vacate their apartments, despite a state law that forbids such evictions.

Jorge Aviles, a lawyer for the Housing Resource Center in Jersey City, brought the issue to the attention of the county Board of Chosen Freeholders at a meeting last month. In response, Hudson County Executive Thomas DeGise issued a statement warning renters to be on the lookout for such scams if their buildings go into foreclosure.

Freeholder Bill O'Dea said he approached state Public Advocate Ronald Chen at the state League of Municipalities convention in Atlantic City to urge him to take up the issue, and also notified the state attorney general and the governor's office.

"The public advocate is already looking to file a lawsuit over this matter," O'Dea said. That office confirmed it will make an announcement soon about the steps it will take.

DeGise spokesman Jim Kennelly said the county is also preparing a pubic service announcement to run on local television stations warning tenants to be on the alert, and telling them to contact the county Division of Consumer Affairs if they receive a suspicious "cash for keys" offer.

Gregory Diebold, deputy director of the Hudson County branch of Legal Services of New Jersey, said the "clearly unethical" letters are becoming more common.

"I'd say it's always been a trend, but now there are so many more foreclosures," he said. There were 485 foreclosure filings in Hudson County in October, and filings statewide jumped 75 percent from a year ago, according to RealtyTrac.

Diebold said that before a 1994 state Supreme Court ruling, a bank taking over a building "could throw out all the tenants for no reason." But now with the added protection for renters, banks do not want to become landlords and use this underhanded tactic to try to empty their properties, believing they will be easier to sell, he said.

Anyone receiving a "cash for keys" letter instead of the required month's notice of a legal eviction proceeding should ignore it or seek an attorney's advice, Diebold said. Tenants can contact the county DCA at (201) 795-6295 or the Housing Resource Center at (201) 795-5615.

Journal staff writer Earl Morgan contributed to this story
http://www.nj.com/news/jjournal/jerse ... 28721148165940.xml&coll=3