Wall Street Journal On Tenants Facing Foreclosure Eviction

The Wall Street Journal reports:

• As U.S. foreclosures soar, renters -- especially in small apartment buildings and single-family homes -- are paying a high price for their landlords' financial troubles. Across the U.S., thousands of people are being evicted.

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• Often, the small multifamily dwellings entering foreclosure are in older urban neighborhoods with a lower-income population. That's the same demographic, critics say, that was targeted by predatory lenders peddling mortgages with introductory "teaser" rates that reset to higher rates. "The biggest problem in this industry is that you could buy a three- or four-family home with no money down," said Anthony Rondeau, a vice president of Select Financial Mortgage Corp. in East Providence, R.I. "[Mortgage] brokers were shoving this through the system -- it didn't matter that I didn't do it, because someone else would."

For more, see Tenants Pay as Landlords Default (Foreclosures Void Leases, Bring Eviction Notices; Bigger-Building Benefit) (requires subscription; if no subscription, try here; then click link).

For posts related to tenant evictions due to foreclosure, see Tenants Unwittingly Renting Homes In Foreclosure I , II , III , and IV. equity skimming unwittingly gamma