My Landlord is in Foreclosure: Renter Woes - Reuters
Thursday, June 19th, 2008Home owners and real estate professionals are not the only ones hurting while the real estate market plummets to new lows and foreclosure rates skyrocket. Renters are also feeling the brunt of the problem. Many of them, such as Las Vegas’ Marketa Johnson, are being evicted as property changes hands, whether they have a history of good tenancy or not.
One of the best ways for a seller to make money investing in real estate is to rent out the acquired property for an amount that equals or surpasses the monthly mortgage, property taxes, and other related expenses. Unfortunately for renters, inflating ARM’s (adjustable rate mortgages) are making it hard for investors who took the property management route to make monthly payments without raising rents, ultimately sending them into foreclosure.
By Patrick Rucke:
Edited by John O’Callaghan
June 15, 2008
“LAS VEGAS (Reuters) - The day before her husband was deployed to the Middle East by the U.S. Air Force, Marketa Johnson got word that her family would be evicted from their rented home.
“It did not matter that the Johnsons had never missed a rent payment and had signed a two-year lease. The property owner was facing foreclosure and so Johnson simply packed her bags.
“Almost one in five recent foreclosures have been against mortgage borrowers who did not live in the home, according to a snapshot from the Mortgage Bankers Association.”
