Tenants being evicted due to foreclosures
When landlords head for foreclosure, renters are evicted, sometimes with no notice, becoming the latest victims of the foreclosure nightmare.
In some areas of the country, foreclosures have hit an all time high. Many have lost homes they own and live in because mortgage costs have risen too quickly and they cannot keep up. Thanks to the rise in interest rates and the adjustment of many loans, foreclosure numbers continue to rise. These events do not just happen to home owners but landlords as well.
As the property market boomed in recent years, many first time property owners took advantage of the opportunity to purchase and let properties. As foreclosure continues to hit, more of these property owners are faced with foreclosures. Many of them will allow tenants to remain in the property as long as possible, giving them little time to find a new home when the property is foreclosed on by banks.
In most areas, foreclosure proceedings are considered more legally binding than a lease. Experts are warning renters to do their homework to insure that those they rent from are in good standings on their loans. Sometimes, it only a few days notice is all that is given to renters.
Last year, foreclosure numbers doubled or more in many cities. Cities like Cleveland and Detroit saw more foreclosures than any other area, but even tourism driven areas where rental property is very popular saw increasing rates, with Nevada rates being some of the highest in this sector. Most experts believe that 2008 will not be much better.