Foreclosures dump tenants on streets

The US foreclosure crisis is starting to hit families renting houses as their landlords fall behind with payments. Tenants even with perfect credit and payment histories are being evicted in record numbers because owners are delinquent on monthly mortgage commitments.

When a rented or leased home enters foreclosure, US banks and landlords have no legal obligation to inform the tenants. This means many renters are the last to know there is a problem, according to Boise Real Estate Info.

The site says:

“Many discover their imminent eviction only when they come home to find an official notice from the lender posted on the door.

“In the worst cases, for example if families were away on long vacations when notices were posted, they return home to find the locks changed and their belongings in the street.”

According to the site, around 40 per cent of all single family home foreclosures in Los Angeles involve rented or leased property, and those figures are rising monthly.

A statement from the site also said the rental tenant-foreclosure situation in LA and other US cities is reaching “a boiling point”.

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  4. US forecloure rate up 14 per cent
  5. Tax breaks for property investment landlords to boost housing?

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