NM banks to work with renters, cut out the middle man

From KOB-TV.com - by Mike Daniels, KOB Eyewitness News 4 - Beginning January 1, 2012, a new law will allow banks to work with renters whose landlords are not paying the mortgage in New Mexico. In the past, the tenants would likely be evicted. With the new law, it gives the banks the option to cut out the middleman and work directly with the renter. Two days before Christmas, Gavino Rivera found out his landlord had not been paying the mortgage. “It's me and my children. I'm a single father. To hear something like this is devastating," Rivera said. Since March, he has paid $1,100 a month in rent. Rather than kicking him out, Wells Fargo will work with him to keep him in the house. All they are going to require is that he pay them $790 a month. Rep. Zachary Cook of Ruidoso, introduced H.B199. It was passed unanimously in March by the state legislature. "It will cut down on the bureaucracy that lenders have to do in order to collect money that's owed to them," says Rep. Cook. It will also cut down on the amount of renters evicted, which could mean less property crime because tenants are in the homes. Read more

NM banks to work with renters, cut out the middle man