Renters are 'Shadow Victims' of Mortgage Meltdown

Because many of the homes purchased by real estate speculators over the past few years of the housing bubble were rented out, tenants are now finding themselves subject to eviction as the property owners go into default.

1 minute read

February 17, 2008, 9:00 AM PST

By Michael Dudley


"The California Apartment Assn., the state's largest organization of rental property owners, estimates that as much as a quarter of all foreclosed single-family residences are occupied by renters. The number of renters ensnared in the foreclosure fiasco is even larger when duplexes and other multi-unit buildings are factored in."

"And the evictions show no sign of abating. Many now-foreclosed properties had been purchased by real estate speculators taking advantage of dirt-cheap loans, who rented the properties to tenants before falling behind on mortgage payments."

"This 'shadow market' of renters isn't being tracked by organizations that compile statistics on established rental properties, Conway said, adding that the number of such renters has grown in the Inland Empire."

"Karen Fricke, executive director of the Apartment Assn. Greater Inland Empire, an organization of rental property owners, said it was no secret among landlords that many renters were getting caught up in the mortgage meltdown."

Thursday, February 14, 2008 in The Los Angeles Times

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