Jean Caramico, Plaintiffs-Appellants-Appellees v. The Secretary of the Department of Housing and Urban Development, Defendants-Appellees-Appellants

FEINBERG, Circuit Judge:

Plaintiffs are or were non-owner occupants of two-to-four family dwellings located in low income areas of Brooklyn, the mortgages of which were insured by the Federal Housing Administration (FHA).1 Under FHA regulations, for a mortgagee to recover on his mortgage insurance after default he must tender possession of the property, unoccupied, to the FHA. Thus, after plaintiffs’ landlords defaulted and the properties were foreclosed, the mortgagees sought to evict plaintiffs from their homes to comply with the vacant delivery requirement. Plaintiffs filed this suit in the…