In November 2007 I was 18 months into my job I had won just out of university. Over the best sushi in Pismo Beach my boss and I discussed the need to fill out the company and pursue various strategies. The decision we came to involved me relocating for the company to the Central Valley to work with the specification community and assume responsibility for seven counties as opposed to the two I currently had. This seemed like security in employment and with my youth being spent in the valley it was familiar enough to consider settling down.
I quickly sought out a residence and I found something suitable that allowed me close access to the freeways in a decent part of town. My condo on Holt has a vintage feel with rough plaster walls and a hardwood floor. It really is a perfect bachelor pad; sparse yet well appointed in a retro way. I settled in, put up decor, and in February of this year my landlords extended an offer to sell me the place. They had done this initially but with a price of $145k, which I rightly scoffed at. This offer was one of desperation and had been suggested by the bank-$39k. This was the first time I had any indication of mortgage trouble from them and that was a question I specifically asked prior to accepting the rental contract. Being fairly shrewd and not wanting to lose my arrangements or cause any further harm to their family I contacted a realtor and put together the necessaries. The offer was submitted, countered, and resubmitted in April of this year. From what all parties said it looked good and disaster would be averted on all fronts.
For those unfamiliar with the short sale process it can take some time to get approval and go through. My offer was a bit lower than the bank asking price, $31k, but still should not have been a problem due to the length of time the unit had been on the market. After six to eight weeks we began to get concerned about progress and questions started to get asked by the realtors involved. Only after entire chain of events went down did we find out what happened.
On July 6 I got a notice posted on my door informing me of a trustee auction of the condo occurring on July 27. After immediately alerting my realtor and landlords it was revealed that the company used to process the short sale, the “we stop foreclosures” people, had closed their doors without notice four weeks prior and made a run for the border. They had taken all of the documentation, paperwork, and fees paid with them.
At this point I was informed by my realtor that I could submit another offer to stop the auction/foreclosure, which would give my landlords time to put together the new hardship packets that would qualify them to short sell. Over the next week I worked furiously to get all things on my side ready and my landlords reported to me they were doing the same. The day of the auction came and I was assured that we were in the clear, that the foreclosure was averted. I breathed a sigh of relief for myself and my landlords, mostly because they are my age and have two small children.
July 28, 1pm. Being a territory manager I work from home often but don’t usually get visitors in the middle of the day. When I answered the door I was greeted by a moderately attractive young professional, not unlike myself, who informed me that she represented the new owners and she had my cash for keys offer. Obviously stunned I asked if she was sure and explained what should have happened. She was very apologetic, handed me the offer of $1500, and said I should be out by August 21, a generous 24 days, but I had six days to decide to accept and sign the offer.
After a few desperate phone calls to my realtor followed by family for consultation, I came to the realization that I don’t know my rights and I could very soon be homeless. I turned to the web to see what I could find and I was shocked to know what kind of a position I was in. In a word, good, considering I had to move. Here is what gave me some hope:
S.896
To prevent mortgage foreclosures and enhance mortgage credit availability.
(Enrolled as Agreed to or Passed by Both House and Senate)
TITLE VII--PROTECTING TENANTS AT FORECLOSURE ACT
SEC. 701. SHORT TITLE.
This title may be cited as the `Protecting Tenants at Foreclosure Act of 2009'.
SEC. 702. EFFECT OF FORECLOSURE ON PREEXISTING TENANCY.
(a) In General- In the case of any foreclosure on a federally-related mortgage loan
or on any dwelling or residential real property after the date of enactment of this
title, any immediate successor in interest in such property pursuant to the
foreclosure shall assume such interest subject to--
(1) the provision, by such successor in interest of a notice to vacate to any
bona fide tenant at least 90 days before the effective date of such notice;
and
(2) the rights of any bona fide tenant, as of the date of such notice of
foreclosure--
(A) under any bona fide lease entered into before the notice of
foreclosure to occupy the premises until the end of the remaining
term of the lease, except that a successor in interest may terminate
a lease effective on the date of sale of the unit to a purchaser who
will occupy the unit as a primary residence, subject to the receipt
by the tenant of the 90 day notice under paragraph (1); or
(B) without a lease or with a lease terminable at will under State
law, subject to the receipt by the tenant of the 90 day notice under
subsection (1),
except that nothing under this section shall affect the requirements for
termination of any Federal- or State-subsidized tenancy or of any State or
local law that provides longer time periods or other additional protections
for tenants.
As I had been a good tenant for over a year I was on a month to month lease when this happened. Under California law I was given 60 to vacate once given notice. Since my foreclosure occurred after May 20, 2009 I was given an extra 30 days for a grand total of 90 days. While I was not excited about the prospect of packing up and moving again the idea of living 90 days rent free was an enticing prospect to consider. I began thinking it could possibly work out in my favor. I would miss out on the $1500 but three months of rent free living could make up for that. But then I began to take stock of my life and where I existed in it.
I was 30 years old in a good job for my age, on the cutting edge of what could be considered the technological side of the green movement, getting a management degree (MPA) to prepare for my eventual move upwards, and enjoying settling in. But I was not satisfied with how long I was having to work and I was not thrilled with where I had ended up. Eighty hour weeks were putting me further from my weight, social, and travel goals as well. I was far from family but had succeeded professionally and excelled scholastically. While commendable, what had I accomplished that was worthwhile? About this time I received a call from my younger brother who proceeded to pitch me on something that I had not considered.
He began to lay out the argument that I am opinionated, unashamed, generally well informed, and getting a public administration degree. Why not use the degree in its intended field? I know for many degree holders that sounds like crazy talk but I have to say that the idea did hold merit. The thought of public service brought to mind the feeling I got when I was donating, arguing with family, and making phone calls for the Obama campaign. The thrill of something good actually happening and getting excited about something other than commission levels was something that stayed with me and I wanted to feel again. So with that faintest idea I set about looking for what was available and I have not been disappointed.
With just over three quarters until my MPA is complete I have many interesting possibilities coming to the surface for consideration. Opportunities in the Department of Health or Department of Commerce or Housing are the most prevalent and intriguing. In the season one finale of the West Wing President Bartlett remarks that “decisions are made by those who show up.” I have missed enough class.
Today, August 3, 2009 I decided to leave my beautiful home state of California and the promising run of Mayor Newsom for Governor in 2010. I accepted an altered cash for keys offer to facilitate moving to the next phase of my life in Olympia, WA. Today I became a California housing statistic, although I am grateful for the service I received from our Congress and the Obama administration, as 90 days is better than 60. While I may not have a job secured today, the prospect of being near to family and traveling down the road I need is more important than employment continuity.
It is time for me to show up. It is time for me to lead. It is time for me to serve.