$2,500 Richer, But Renter Still A Foreclosure Victim

     As if we needed another foreclosure hardship angle.


     The March 27 “CBS Evening News” had no problem finding another one, but perhaps this one wasn’t quite so much hardship, but an inconvenience. Well-compensated inconvenience.


     “What they did not know is that the owner of the home they've been renting near Oakland, California, wasn't paying her mortgage, and the bank foreclosed on the property at the worst possible time,” CBS correspondent Ben Tracy said.


     The renters, a family in Oakland, Calif. with an expectant mother, were compensated for the move.


     “And so brokers representing banks often offer what's called ‘cash for keys,’ a payoff to get a renter out quickly,” Tracy said.


     “The offer was $2,500 to leave,” Adriana Diharce, one of the members of the family renting, said.


     According to the CBS report, their original agreement was 30 days, but they accepted an option to expedite the process and shave 16 days off the agreement for the compensation.


     However, “Evening News” offered viewers an even worse-case scenario from liberal Oakland, Calif. politician.


     “The person gets a notice from the bank saying, ‘Hello, your rent is now $10,000 a month. If you can’t pay it, time to leave,’” John Russo, the Oakland, Calif. City Attorney said.


      CBS left out one important detail about Russo in their report. According to his Web site, JohnRusso.com, Russo was a candidate for California Assembly in 2006, running as a Democrat.  Also according to his campaign Web site, Russo has some very left-leaning supporters – including the Acorn Political Action Committee.


     Acorn is a radical group on housing issues.  Last year, the group demanded that low-introductory mortgages rates be extended through the life of an adjustable-rate mortgage.