Evicted Foreclosure Victims Find Renting Accommodation Hard To Get
Filed under: Foreclosure
Adding insult to injury the evicted foreclosure victims are finding it hard to get rented accommodation. The foreclosure taint does not seem to easily wash away – it leaves a negative mark on credit history.
More tragic stories are coming in as the foreclosure drama unfolds itself. One couple from Virginia ended up by putting up in a hotel. But the question is – for how long will finances permit? It is costing them $3,000 per month. Their credit counselor Trish Lynch from ClearPoint Financial Solutions asked them to try out private owners who would be more lenient on credit matters but in return would expect higher rents to cover the risk.
With the surging tide of foreclosures lashing the country more people are getting evicted and turning to rented accommodation for shelters. They are now flooding the market penetrating the investor owned houses and condos that make up more than half the rental units. The apartment industry does not keep track of these. Some foreclosed victims are opting for the traditional rental market but there are innumerable hurdles.
Landlords are afraid of keeping them on as tenants for many reasons. The landlords came out with their fears to the President of Illinois Rental Property Owners Association (consisting of 500 members) that they are uneasy about these tenants not being able to regularly pay their rent. Even those who are in the process of negotiating a short sale are not welcome as tenants.
The apartment industry has been trying to categorize the people into good and bad renters and accordingly making additions and alterations. Mark Fogelman of Memphis owns and manages 18,000 rental units across the city. He says that the matter is too subjective and risky. Many applicants have been rejected because of their history of defaulting in mortgages. What surety is there that they will not similarly default in rents?
About 5% to 7% of the applicants come from those who are past 90 days in their mortgage dues. Only two thirds of those who apply finally are permitted to board in as tenants. Those with foreclosures tagging behind them have four times less chance to qualify. The credit story does not end with foreclosure. The person still has to continue with commitments in meeting credit cards and other debt obligations. This will further jeopardize their financial status.
- Foreclosures and the Individual
- Foreclosure Relief Programme Kicks Off
- Predatory Lending Leads to Foreclosure
- Foreclosure Bus Tours to Tempt Buyers
- Massachusetts Gets Federal Funds to Combat Foreclosures
- Multiplying Foreclosures Lead To Increasing Abandoned Houses
July 23rd, 2008 at 12:20 am
[...] and meet their bill commitments. Adams added that her office is ready to sit down with the troubled foreclosure victims regarding payment plans. Moreover there are various other programmes for seniors and the physically [...]
September 10th, 2008 at 10:29 pm
[...] on the heels of foreclosure comes the scammers. Trying to anticipate their move and to help the foreclosure victims the attorney general of the state of Washington are mailing about 14,174 letters in the current [...]