US: Renters Blindsided by Foreclosures "Explosion"

[Green_Bear]

November 18, 2007 (LPAC)–Tens of thousands of renters in houses whose owners default on their mortgages have been evicted because of foreclosures – without ever missing a rental payment – and are scrambling to find a place to live. This “explosion” was triggered by speculators who overleveraged themselves, with the renters as “collateral damage,” a lawyer at the Massachusetts Law Reform Institute told the New York Times.

One in eight foreclosures nationwide was for homes non-owner-occupied, according to a survey by the Mortgage Bankers Association, which acknowledges that this figure likely underestimates the problem. Several states with high foreclosure rates have a much greater percentage of defaults for homes not owner-occupied, showing how wild the real estate speculative frenzy was during the past few years.

In Nevada, where the foreclosure rate is one of the highest in the nation, 28% of mortgages in default were for homes not owner-occupied. Arizona and Florida, both near the top in foreclosures, are also well above the national average. In California, 22% of residential properties lost to foreclosure this year were not owner-occupied, according to ForeclosureRadar.com.

Renters Blindsided by Foreclosures “Explosion”
larouchepac.com/news/2007/11/18/ … osion.html

[ragingbear]

@Green Bear

November 18, 2007 (LPAC)–Tens of thousands of renters in houses whose owners default on their mortgages have been evicted because of foreclosures – without ever missing a rental payment – and are scrambling to find a place to live. This “explosion” was triggered by speculators who overleveraged themselves, with the renters as “collateral damage,” a lawyer at the Massachusetts Law Reform Institute told the New York Times.

One in eight foreclosures nationwide was for homes non-owner-occupied, according to a survey by the Mortgage Bankers Association, which acknowledges that this figure likely underestimates the problem. Several states with high foreclosure rates have a much greater percentage of defaults for homes not owner-occupied, showing how wild the real estate speculative frenzy was during the past few years.

In Nevada, where the foreclosure rate is one of the highest in the nation, 28% of mortgages in default were for homes not owner-occupied. Arizona and Florida, both near the top in foreclosures, are also well above the national average. In California, 22% of residential properties lost to foreclosure this year were not owner-occupied, according to ForeclosureRadar.com.

Renters Blindsided by Foreclosures “Explosion”

larouchepac.com/news/2007/11/18/ … osion.html

Nasty - if they can’t keep making the payments even when the place is rented, they must really have overpaid for the place.

[geckko]

@ragingbear

Nasty - if they can’t keep making the payments even when the place is rented, they must really have overpaid for the place.

Yeah,

Imagine a property market in such a state that mortgage interest payments so dwarf rents… ohhh… sorry…