San Francisco Chronicle: Foreclosures hit city, renters

[marmar]

Foreclosures hit city, renters
Think San Francisco is largely immune from the foreclosure crisis? Think again.


The number of foreclosed buildings shot up to 667 last year from 81 in 2006 -- a 723 percent jump, according to a report by a city-led working group trying to deal with the problem.

And that figure doesn't include another 51 buildings with 1,400 units that the Lembi Group, one of the city's largest landlords through its divisions Skyline Realty, Inc. and CitiApartments, Inc., recently deeded back to the bank rather than have them foreclosed on, said Sara Shortt, executive director of the Housing Rights Committee of San Francisco.

"If this is a sign of things to come, I don't know what we're going to do," said Shortt, who worked with the San Francisco Fair Lending Working Group.

Even renters, who are largely protected by the city's rent ordinance if their landlord is foreclosed on, are feeling the sting. Their utilities are being shut off, unscrupulous landlords are taking their security deposits and lenders who seize buildings are sending them illegal eviction notices, according to the working group, which was assembled by Supervisor Sophie Maxwell, Assessor-Recorder Phil Ting and Treasurer Jose Cisneros. .........(more)

The complete piece is at: http://www.sfgate.com/cgi-bin/blogs/cityinsider/detail?blogid=55&entry_id=36156

[BlooInBloo]

1. It's so stupid. If the loaners would simply acknowledge that the price was too high...

in the first place, they've already GOT a buyer living in the place, who would be willing to negotiate more reasonable terms.

Instead, the loaners are gonna kick em out, and be left with a glut of housing assets, which no-one will buy at the inflated bubble prices (a) because they're overpriced (b) because of oversupply, and (c) nobody has any money anyway.

(shakes head)

[jwirr]

2. Many buyers are going to be hit with the need for 10-20% down

payments they do not have.