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State News

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Home mortgage crisis costing
renters their homes too

08:17 AM CST on Friday, February 15, 2008

By Kevin Reece / 11 News

Click on video for Kevin Reece's 11 News report

Jennifer Cutaio and Alejandro Herrera and their three children moved into a three-bedroom house in Northeast Harris County just four months ago.

But now?

"It's uh; it's a nightmare,” said Jennifer.

A nightmare, they say, came knocking on Wednesday. A deputy constable saying they had two days to get out.

"And he had an eviction notice for the owners of this property,” said Alejandro.

Only they are not the homeowners. They are they renters. And signed a lease with a management company in Greenway Plaza.

A management company that says it didn't know about the foreclosure either.

"And they said that's the first they'd heard of it. Which I don't understand how this situation could even have happened,” said Alejandro.

This is how it could and often does happen.

Wells Fargo foreclosed on the owner. The management company and the renters were likely never told, up to a point.

"Apparently, they continued to accept our rent payments knowing that the owner, knowing that his home was being foreclosed on,” said Jennifer. “That's not fair.”

But unfortunately, it is not that unusual and 11 News legal expert Gerald Treece says renters don't have much recourse.

"If that landlord loses the interest, so does the tenant and that tenant is subject to eviction,” said Treece. "But nobody has an interest in being mean spirited here.

“It's just business."

The couple says it may be business, but not fair business.

"That's not fair at all. I think the only ones hurting out of this situation is us,” said Jennifer.

But according to court documents 11 News found, the eviction notice should not have come as a complete surprise.

The eviction process started last month.

Constables say Jennifer and Alejandro received their first notice in writing at least a week ago.

Still they are caught in the mortgage and foreclosure mess that is driving renters from their homes too.

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