Renters Affected by Foreclosure
By Anthony
Petrucci
The foreclosures market is no longer just affecting home
owners. Renters are also suffering the consequences of foreclosures.
A recent report by the joint Center for Housing Studies at
Harvard University, states that "renters are facing tougher
competition for affordable apartments, or they are losing
their home with little warning when their landlord faces
foreclosure."
Since so many foreclosures have occurred over the last year,
renters are facing more competition in low-cost rental units.
Also, renters of single family homes are often faced with
eviction notices since the property they are renting has
not managed to avoid foreclosure. Homeowners are scrambling
to find ways to hold onto their homes and stop foreclosure
proceedings, but sometimes there is just not enough money
to be made to keep the mortgages current when foreclosure
is imminent.
Not all homeowners are seeking to rent after they are foreclosed
on. Some are choosing to stay with generous friends or family
members until they get back on their feet and get their credit
and finances repaired. This is not an ideal situation for
long term, but it does provide a viable solution for the
immediate future. If you find yourself moving in with friends
and family, make sure to establish clear boundaries with
one another. Talk about your expectations of each other and
discuss a time frame for how long you will stay. That way,
both parties are informed and disagreements can be kept to
a minimum.
One positive aspect for those who have been renting for
a long time and who have gotten their finances in order,
is the onslaught of houses coming available for sale. Those
homes of course will be at much lower prices and might need
a little work, but will most likely be a great deal for some
first time home buyers or those re-entering the market. Not
everyone who is a renter currently will be affected negatively
by the foreclosure market. If you have been saving through
renting, then start investigating the current foreclosure
market and see how you can take advantage of it.
The future for renters affected by foreclosures is unknown,
however just like with any other hardship there is always
a silver lining, you just have to find it.
