Jeremy Rosen, executive director of the National Policy and Advocacy Council on Homelessness, thinks the effect of foreclosures on low-income renters has been underreported.Any thoughts from readers?
"The foreclosure crisis is hitting two groups," Rosen said. "The owners of houses and buildings, and the renters that are occupying them."
The main issue for Rosen pertains to time: Renters can be forced to leave a foreclosed property at a faster pace than a homeowner, who typically gets earlier notice that a crisis is looming. If the renter has limited income, that compounds the problem.
Each state has its own rules concerning tenants' legal rights. This means that some states say tenants have to vacate a foreclosed property within weeks and in some instances, even days. The lack of notice often doesn't give occupants enough time to find an affordable place to live, according to Rosen. For people on a tight budget, this can be devastating, Rosen said.
"There are moving expenses and first month's rent," Rosen said. "Sometimes people just don't have the money for it." ...
The doomsday scenario for low-income renters is homelessness and homeless advocacy groups believe it's a problem that will soon have to be dealt with.
"Foreclosures are driving rental prices up, supply is not keeping up with demand," said Greg White, a policy analyst for the National Low Income Housing Coalition. "You are going to start to see a flood into homeless shelters."
Wednesday, July 23, 2008
The Unnoticed Foreclosure Victims: Renters
MarketWatch reports that homeowners aren't the only people affected by foreclosures. If the foreclosed property is a rental, the renter can often be forced to move on little notice. For low-income renters, this can result in homelessness.