The Unseen Foreclosure Effect
October 25th, 2007 by AptBldgTrader“The foreclosure crisis is increasingly claiming the homes of people who never made the mistake of taking out an unaffordable mortgage: renters. Hundreds of tenants in foreclosed buildings have been evicted or are facing eviction by mortgage companies that do not want to be landlords. Tomorrow, US Representative Barney Frank said he plans to introduce federal legislation on foreclosures that includes a provision that tenant leases remain in effect after foreclosure, and that tenants without leases must receive 90 days notice before eviction.”
“Banks will no longer be able to put their convenience ahead of people’s ability to live,” said Frank, who chairs the House Committee on Financial Services. “We have asked lenders, saying, ‘You really shouldn’t do this.’ Now the next step is to make it mandatory.” - Boston.com (Full Article)
October 25th, 2007 at 5:51 pm
The above posting was taken from an article written in the Boston Globe on October 21, 2007. The article makes an interesting point: Foreclosures not only effect the Owners’ of these properties, but they are also effecting the Renters who occupy those properties. Thereby adding to the list of people seeking house:
1) Individuals who cannot qualify for a loan: Due to poor credit or lack of income.
2) Individuals who have been displaced due to Condo Conversions.
3) Individuals who have been displaced from their Personal Residence due to foreclosure.
4) Individuals who have been displaced from their Residence which they were leasing, whom the owners were foreclosed on.