Foreclosures, Short Sales and Property Auctions

In 1968, Congress enacted Title VIII of the Civil Rights Act, called the federal Fair Housing Act, which declared a national policy of providing fair housing throughout the United States (reference Sections 3601-3631 of Title 42, United States Code).  According to Real Estate Wiki (www.RealEstateWiki.com) this law makes discrimination based on race, color, sex, familial status, handicap, religion or national origin illegal in connection with the sale or rental of most dwellings (including time-sharing units) and any vacant land offered for residential construction or use.

The fair housing law provides protection against the following:

• Refusing to sell or rent to, deal or negotiate with any person
• Misrepresenting terms or conditions for buying or renting housing
• Advertising that housing is available only to persons of a certain race, color, sex, familial status, handicap, religion or national origin
• Denying that housing is available for inspection, sale or rent when it really is available
• Blockbusting—a practice whereby a broker hopes to profit through persuading owners to sell or rent housing by telling them that minority groups are moving into the neighborhood
• Denying or requiring different terms or conditions for home loans made by commercial lenders
• Denying to anyone the use of, or participation in, any real estate service 

There are exceptions and in 1988, amendments were passed to extend the “handicapped” provision to include physical, mental impairment, as well as cancer, AIDS, alcoholism, visual, and hearing or speech impediments. 

For much more information about fair housing and the criminal penalties that may apply to those who coerce, intimidate, threaten or interfere with a person’s right in buying, renting or selling housing – be it regular transaction or during a short sale, foreclosure or property auction, visit www.RealEstateWiki.com and review the hundreds of “Frequently Asked Questions” about buying, owning, selling and renting a home.

The law on fair housing is administered by the Office of Equal Opportunity under the direction of the Secretary of the Department of Housing and Urban Development (HUD). Real Estate Wiki is an online encyclopedia, glossary, dictionary and wiki with over 20,000 pages dedicated to providing quality free information to all those who have real estate questions.