As Owners Feel Mortgage Pain, So Do Renters

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In the foreclosure crisis of 2007, thousands of American families are losing their homes without ever missing a payment. They are renters in houses whose owners default on their mortgages — a large but little noticed class of casualties.

Some live in big apartments, others in houses owned by small investors who got in over their heads.

There are no exact figures for how many renters have been evicted because of foreclosures, but a survey taken earlier this year by the Mortgage Bankers Association found that one in eight foreclosures was non-owner-occupied. This figure probably underestimates the problem, according to the association, because buildings receive tax benefits if they are registered as owner-occupied. More than one million properties are expected to enter foreclosure this year.

Many renters say they never even knew their buildings were heading for foreclosure.

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[bluestateguy]

1. That is an injustice

Deadbeat apartment/condo owners don't pay their bills and get foreclosed upon, which is probably a minor inconvenience for them, but a major inconvenience for renters, who in most cases did everything they were asked to do (paying the rent on time, following the lease rules, etc.).

I have been a renter for nine years and have never made a late payment.

We need to pass the Dodd bill right quick.

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3. As foreclosures go up so is rent. Double trouble. n/t

[high density]

2. Foreclose, evict the tenants, and then try to auction off an empty multi-family property?

That sounds pretty stupid on the part of the banks. While I understand they don't want to mess with the logistics of having tenants in the property, it seems like the house would be much more attractive to a prospective buyer if it is full of paying tenants. Plus, 72 hours is not a lot of notice to find a new apartment and move out.

[hlthe2b]

4. How many of these soon-to-be evicted renters can afford

to move... By the time one pays deposits in advance and even the cheapest methods of moving furniture, they'd be out at least a couple of thousand $$ in most big cities. As more once middle class individuals and families live paycheck to paycheck, this is a sure way to drive them out to the street. It is criminal, in my opinion. I hope the COngressional bill gets passed immediately.

DUers who care about societal equity, will, I hope join together to support renters from this horrendous injustice.