May 29 2008

Some renters being affected by foreclosures

This story on made me mad.

Renters are being affected by this foreclosure mess, too. In the article, one family dutifully paid rent on time. They’re probably going to get kicked out of their home, because the owner of the rental house is behind on the mortgage. Good grief. The family will lose their home and their $7k security deposit.

The same thing is happening to a single mother of eight children, also mentioned in that story.

It’s really a shame when a family does their best by renting a house (and avoiding a mortgage they can’t afford), and paying their rent on time, and get kicked out anyway.

My husband and I are renters in an apartment complex, and I feel it’s less likely that the apartment company will go into foreclosure. But nothing is guaranteed.

13 Responses to “Some renters being affected by foreclosures”

  1. I read that same article, and it’s not something I immediately think about in the foreclosure crisis, but definitely a side effect- it’s just as bad as the mortgage holders losing their homes, but the renters have no control over it!

    I remember as a child we lived in a rented home, and the owner decided to sell it, so we had to move on short notice.

    Joanna’s last blog post..The Story of a Daybed

  2. I have heard of two families being displaced in my hometown. Both families were renting and were asked to move because the homeowners went into bankruptcy. Though these families were very glad that they found a place to call home.

  3. I’ve heard about this from a friend in FL where rental houses seems more common. The bad thing is if you have to move from one rental to another, who’s to say the cycle does not continue? I guess some of that is inevitable, but the bureacracy mentioned in the CNN article leaves a lot to be desired.

    Sean’s last blog post..Goal: Save $500 in Book Expenses using Public Library in 2008

  4. It’s a shame how this recession has affected so many people on such a large scale. The least they could do is give back the deposits during the bank transaction.

  5. My neighbors are renters, and they got the knock on the door last week. I also have a friend who is a property owner, who might be letting one of his rentals go. Both family the neighbor and the landlord are very stressed out right now.

    That being said, I work in real estate law, did you know that in most states if you have a lease the mortgage company must let the renter stay in the home as long as the renter is still paying the rent.

  6. This happened to good friends of mine just a few months ago – the owners were out of the country and kept saying everything would be fine, they would get current on the mortgage. All told, my friends had less than 3 days to completely pack up their entire home and find a new place to rent. And less than a week in which they even heard there might be problems.

    Kristy’s last blog post..adventures.

  7. This happened to my friend. She didn’t know until the sheriff arrived to evict her and her 6 children.

  8. I read that article too and it made me sad. I’m like you – I feel a bit safer because I’m in an established apartment complex. It’s still scary though. A few years ago I had my rent check bounce because of some oversights on my part. The office sent me a stern note and gave me 24 hours or they would evict me. That scared the crap out of me – suddenly my HOME was in limbo. Everything was okay – I had the money, it was just not in the right checking account – but I can’t tell you how much that fear shook me up.

    ashley @ twentysixcats’s last blog post..happy birthday, Zoey!

  9. *sigh* We are NOT in a recession by definition. Words have meaning. We are in a slow down but the economy has grown (by less than 1% but that is still not decline) and there have not been TWO quarters of decline.

    castocreations’s last blog post..Are You Ready? The Next Frontier?

  10. That does seem insane. It’s not the RENTERS fault. :( Shouldn’t there be some sort of protection for them? I think this is the only case in the housing crisis where I would approve government intervention. They should be allowed to pay rent to the mortgage company (or bank) who takes over the defaulted mortgage. Or however it works with the owner / lender. At least three months to give them time to find a new home. How totally lame. =(

    castocreations’s last blog post..Are You Ready? The Next Frontier?

  11. Wow. I knew that foreclosures were happening more and more, but i didn’t know the extent. My Hubby and I nearly got into a rental home, and now im very thankful we didn’t. Instead we are in an apartment complex and our contract is through a realtor, so God willing, this won’t effect my family. I am sad for those who are being effected. Its something we should all pray about. It is really scarey watching prices raise on everything. I posted a verse on my blog the other day and I find it comforting in times like this…

    Trust in the Lord with all your heart and lean not on your own understanding. In all your ways acknowledge him and he shall direct your paths. Proverbs 3:5-6

    Stacy’s last blog post..Update!

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Hey! I'm Kacie, wife to Shane and mother to Jonathan (7), Vivienne (5) and Amelia (2) . I write about my family's finance: how we save money, improve our spending, and plan for the future.

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