With the number of Countrywide short sales, Countrywide Foreclosures, Indymac properties entering the market as foreclosures and much more more, there is no surpsrise that there is a large number of renters hurt by foreclosures.
As many landlords fall further behind on their mortgage payments and banks seize control of properties, many renters are finding themselves foreced from their homes. Across the U.S., a rising number of landlords are not able to make the monthly payments, sending their properties into foreclosure. Many renters just don’t know what to do. They end up moving into their parents home or some even end up into shelters.
Many of the owners (investors) got low-rate teaser mortgages and intended to only hold onto the building for a few years and then sell them at a profit. Since the housing market has depressed, the owners cannot sell the homes or afford the higher mortgage payments causing them to default.
The lack of afforadable rental units is becoming a huge problem in some area. People are now applying for public and subsidized housing but the waits are long for these homes.