Saturday, August 18, 2007

Banks, civil rights groups and community members should lobby ...

A number of individuals, businesses, and organizations have had their bank accounts closed due to so-called "suspicious account-related activity." The suspicion causes the compliance department to recommend account closure.

This is not happening only to Arab Americans and American Muslims. A few weeks ago, I was at a meeting in Washington that centered on the issue of charities in the U.S. A non -Arab/non-Muslim resident attorney who attended the meeting spoke of his Saudi clients and shared a story about his bank experience. He said that he receives wired funds to his escrow account from Saudi Arabia for his legal fees. His bank sent him a notice stating that it intends to close his escrow account. He found out that the funds from Saudi Arabia were the reason. The cost-benefit analysis of the bank showed that closure of the red-flagged account was the bank's best bet.

Tuesday, August 7, 2007

Tenants still have rights while landlord goes into foreclosure

In general, a lease entered into before the mortgage is in place is ordinarily not affected by foreclosure.

But a lease entered into after the mortgage was in place is terminated by the foreclosure the moment the landlord's interest in the property expires - typically, six months from the date the property is sold.

This six-month period is known as the redemption period the time in which the landlord may buy back his interest in the property.

Does the tenant have a right to continue occupying the premises after the property is sold?

Fortunately, tenants may continue to reside in the premises after the sale.

They must continue to pay rent.

Because the purchaser does not obtain title to the property until the end of the redemption period, the tenant should pay rent to the landlord, not the purchaser.