Eviction can come suddenly for renters in U.S.

[UpInArms]

Source: Reuters

crisis forces more properties into foreclosure, even renters are feeling the pain.

When a landlord cannot pay the mortgage, tenants can face eviction, financial loss and pressure tactics from new owners who want them to move out. And some are ending up homeless.

Teacher Stuart Briggs was plunged into a nightmare when lenders foreclosed on his landlord last year: Utilities were cut off and he endured months with no lights or working toilets.

<snip>

Little did they know that, when they signed the lease, the house had been in foreclosure since November. Just one day after they moved in, notice was posted on the door that the house would be auctioned off to pay the debt.

They had paid the landlord $5,500 in move-in costs including $2,200 for an option to buy the house in a year. They also spent $11,000 in moving expenses, Smith said.

Read more: http://www.reuters.com/article/bondsNews/idUSN2427682920080214?sp=true

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omg - the mess that has been made only gets worse -

:shakesheadsadly:

[IndyOp]

1. Okay - I don't know why it hadn't occurred to me that this was going to

hit renters as well as mortgage-payers. Probably because it's been a decade since I rented and because I've never owned rental property. I bet there are a huge number of rental properties that are owned by people with adjustable-rate mortgages. Reading this makes me think about international buyers who are buying property all across the U.S. -- I hope they arrive quickly so people who still have jobs will have stable housing.

:scared:

[RuleOfNah]

2. It spreads quickly.

Missed mortgage payments, lose houses, enter market as renters. House prices go down, forcing landlords to sell (or worse), rental stock shrinks due to demand. Housing prices drop, rental prices increase, a lot of people get Katrina'd, and now buyers and renters get paranoid about buying and renting (decreasing liquidity).

For those that can afford the risk (like Buffet), there is a lot of money to be made. Of course that wealth creation has to come from...

[IndyOp]

3. And it all ends with outrageous wealth for the already wealthy, unless we stop it. (n/t)

[KatyaR]

8. I'm a renter, and ths is what scares me more than anything.

My complex was sold a little over a year ago to an out-of-state investment group, and ever since then the place has gone to crap. They're not spending one cent more than they absolutely have to to keep the place open, and it's beginning to show. We are getting crap neighbors that we've had to call the police on, we've had break-ins, and they don't do anything. I wouldn't be surprised if they try to flip the place or just quit paying the mortgage in the next year.

I'm hoping to be able to move into a rental house a friend of mine has--it's paid for and I wouldn't have to worry so much.

[IndyOp]

10. I think you are absolutely right to try for that house or any other that is

paid for with a local landlord. Geez - I hate absentee landlords. I was lucky that when I lived in the Bay Area I lived in one small complex in which the owner lived in the apartment complex just downstairs from me and I lived in several private homes.

Good luck finding a new place!

:hug:

[ConcernedCanuk]

4. USA economy is in free-fall - get it? - Gee - I figured this out months ago

.
.
.

And there is too many down there that still think

"It can't happen to me"

Well, that ain't true

It can

and will.

Almost a Trillion dollars of USAmerican taxes are going for WAR.

My, my - that $1,000,000,000,000 sure would go a long way if'n it was used for social benefits like health care, housing and job creation.

OOPS - almost furgot . .

War creates jobs . . .

silly me . . .

carry on

[peace13]

6. Wow , glad to hear that you are against the war.

I have many Canadian acquaintances that think that this war is just OK for us to be fighting. Many of us down here have been fighting a long time to get this war stopped. My advice to you, after you finish gloating, is to figure out what you are going to do when this disease hits your doorstep. Trust me it is not far behind and it won't be half as funny. Peace, Kim

[Javaman]

5. ARM's the gift that just keeps on giving. nt

[Baby Snooks]

7. Tenants beware!

People who lease privately owned homes and condos should not assume that their lease protects them in the event of a foreclosure. It does not. And never has. And even in "good times" many tenants find themselves with someone at the door informing them that they are the new owners and that they will have to move or will have to pay more to stay. And there is nothing to stop them from evicting the tenants. Lease agreements are null and void once the landlord no longer owns the house.

You can take the landlord/previous owner to court but if they were foreclosed on it is unlikely you will recover anything from a judgement.

The laws need to be changed, although in some states I believe there are some protections, but until they are, it's not only buyer beware in this country it's tenant beware.

[Voltaire99]

9. Beware renting new houses and condos!

Craigslist is full of snazzy new places for rent.

But something like a third of these places will have been bought by specuvestors, who are now likely underwater on their mortgages.

Stay clear -- better to let them all be foreclosed on over the next two to three years. Housing prices will plunge over that time.

[raccoon]

11. Is there any way renters could find out if their landlord is facing foreclosure?

Before the wolf is at the door?

I rent, but I don't think my landlord is facing foreclosure, since they've done some improvements to the property lately. Still, you never know...

[lonestarnot]

12. Someone needs to create a place to check in before renting.

[Deja Q]

13. The shock jock DJ on this morning show I listen to said only 1% of homes were in foreclosure...