Renters also are losing homes to foreclosure

Posted by: Prashant Gopal on April 30, 2008

The foreclosure crisis is causing hardship, not just for homeowners but for an unknown number of renters. The Houston Chronicle today tells the story of a contractor who rebuilds Louisiana homes damaged by Hurricane Katrina, now facing eviction because the house he rents in Houston was foreclosed on.

Sapna Aiyer, a Houston legal aid attorney, told the Chronicle that new owners in Texas aren’t required to continue leases that previous owners signed. Even tenants who are up-to-date on payments can be given just 30-days written notice to vacate.

Reader Comments

Nemoudeis

May 4, 2008 8:19 PM

That's what happened to me up here in Minnesota. My landlord got foreclosed, and I'm out the door a few months later.

And the company that booted me out was EMC Mortgage, a little outfit down in Texas that's owned by Bear Stearns. So that bailout we all got to watch a month or so ago? You can just think of it as your taxes going to compensate Wall Street for the inconvenience of kicking me out of my home of ten years.

I know I do.

And the indignities just keep coming. When I dropped by the old house last week to see how it was doing, I noticed that someone had come along and yanked the antique fireplace mantle from the hearth and carried it out of the house. I don't know whether to laugh at the symbolism of it or cry for the vandalism of it.

Nemoudeis

May 5, 2008 5:14 PM

I feel for the guy; there's a special kind gall that wells up from knowing you're losing your home because someone else played a bad hand of poker with it.

That's what happened to me up here in Minnesota. My landlord got foreclosed, and I'm out the door a few months later.

The company that booted me out was some little outfit down in Texas that's owned by Bear Stearns. So that bailout we all got to watch a month or so ago? You can just think of it as your taxes going to compensate Wall Street for the inconvenience of kicking me out of my home of ten years.

I know I do.

And the indignities just keep coming. when I dropped by the old house last week to see how it was doing, I noticed that someone had come along and yanked the antique fireplace mantle from the hearth and carried it out of the house. I don't know whether to laugh at the symbolism of it or cry for the vandalism of it.

real estate your opinion

May 7, 2008 5:43 PM

A close friend is being evicted from her home in Concord, CA which is being foreclosed on. Living on a block with yard after yard sporting a For Sale Sign with a Foreclosure "hat", it is easy to see what is going on. The move comes at a convenient time for the landlord, as her year lease would turn month to month the day after she was asked to vacate. It is hard being a good tenant, facing a rental market (SF) in which prices have increased 10% this year.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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