COMMENTS: 43
Not Just Homeowners, But Renters Are Really Getting Screwed
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The United States is in the midst of a national foreclosure crisis that threatens to wreak havoc not just on homeowners, but also tenants, urban neighborhoods, and entire cities. Community organizers and legal activists are working hard to stop it.
Over 2 million properties went into foreclosure proceedings last year, a number that experts fear could jump to 10 million in the next few years. Foreclosures aren't just pushing owners into the street. According to the National Low Income Housing Coalition, renters make up an estimated 40% of families facing eviction because of foreclosure. And because the shakiest loans are concentrated in inner cities, the impact of vacant buildings on already fragile neighborhoods can be devastating.
Lenders and lawmakers have been slow to respond to this growing crisis. The Obama administration's mortgage rescue plan announced in February offers limited help to some individual homeowners at risk of foreclosure, but almost completely overlooks the plight of renters in foreclosed buildings. Families facing eviction are left to fend for themselves, often with little understanding of their legal rights or other options. But an array of community organizers and legal advocates have been pushing back--organizing tenants, pressuring policymakers and lenders, and throwing wrenches into the legal system.
Steve Meacham, a tenant organizer with City Life/Vida Urbana, a Boston-based social-justice organization, has been on the front lines of the foreclosure battle. Traditionally, CL/VU had mainly organized tenants facing eviction into unions in order to negotiate with landlords. "About a year ago, we noticed something strange," explains Meacham. "Most of the evictions were being pushed by the banks and lenders."
Now the group scans the latest foreclosure listings and goes door to door to alert tenants. They host meetings with people at risk of eviction, provide assistance and advice about negotiating with lenders, and organize demonstrations outside banks. They also work with former owners who hope to renegotiate their loans with the banks and keep renting out their properties.
Renters are usually the last to learn about a foreclosure. "Tenants will get a letter from a bank offering them a few hundred dollars if they leave in two weeks, and threatening to evict them within a month if they refuse and give them nothing," says Meacham. Those who leave usually lose their security deposits and any prepaid rent. "Most banks depend on people getting scared and leaving. When people resist, especially tenants and former owners, the banks don't know what to do with that and back off."
Thanks to the group's tactics, scores of tenants and former owners have stalled foreclosures, negotiated higher payout deals, and even forced banks to cut mortgages.
Housing advocates are also taking the battle to state and federal policymakers. In December, New Haven Legal Assistance (NHLA) threatened to sue Fannie Mae and Freddie Mac for illegally evicting tenants in buildings the federal lenders had foreclosed on. The agencies backed down and drew up new rules that stopped the practice. Now activists are pressing for the same rules to apply to private lenders.
"The current situation is lose-lose for everyone right now," says NHLA's Amy Eppler-Epstein. "Banks can make more money on a full building than an empty one that's trashed. Shareholders, neighborhoods, communities, and tenants are suffering. It's crazy and it's got to change."
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Comments are closed-
Posted by: Jay Randal on Mar 19, 2009 12:11 AM
Current rating: 5 [1 = poor; 5 = excellent]
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» RE: What a horrible mess former Pres. Dubya caused!
Posted by: northofthecity
» RE: What a horrible mess former Pres. Dubya caused! REPLY
Posted by: Jay Randal
Comments are closed-
Posted by: matt_gerchow on Mar 19, 2009 2:58 AM
Current rating: 1 [1 = poor; 5 = excellent]
As everything rolls down hill, where are all the people at the bottom of the hill going to live?
We are still a long ways from getting out of this crisis, but at the end of the day, we will all survive.
Regards,
Matt Gerchow, CEO
Real-Estate-Investing.com
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: enters and Owners Left Homeless
Posted by: gar1948
» RE: enters and Owners Left Homeless
Posted by: northofthecity
» RE: enters and Owners Left Homeless
Posted by: djnoll
» Same place as always
Posted by: Karina
Comments are closed-
Posted by: Zipidee DooDah & Dipidee DooDog on Mar 19, 2009 5:11 AM
Current rating: 5 [1 = poor; 5 = excellent]
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» I doubt that renting turns out to be more expensive than buying in most cases.
Posted by: rancespergl
» Neither does your lofty idea that being a life-long renter is the "panacea".
Posted by: maxpayne
» RE: xcellent article. Renting isn't safe either.
Posted by: snax
» RE: xcellent article. Renting isn't safe either.
Posted by: JenniferBedingfield
» That can be true. My former apt landlord ridiculously raised its monthly fees and yet
Posted by: JenniferBedingfield
Comments are closed-
Posted by: jmndodge on Mar 19, 2009 6:06 AM
Current rating: 5 [1 = poor; 5 = excellent]
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» RE: renters
Posted by: snax
» RE: renters
Posted by: and_abottleofrum
Comments are closed-
Posted by: HANGTRAITORS on Mar 19, 2009 8:09 AM
Current rating: 4 [1 = poor; 5 = excellent]
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» RE: Landlesss Peasant Fucks
Posted by: northofthecity
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Posted by: anna_2 on Mar 19, 2009 8:18 AM
Current rating: Not yet rated [1 = poor; 5 = excellent]
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» RE: scrow accounts question
Posted by: gar1948
» RE: scrow accounts question
Posted by: katjac2
Comments are closed-
Posted by: and_abottleofrum on Mar 19, 2009 8:47 AM
Current rating: 2 [1 = poor; 5 = excellent]
Most should have seen this crash in property values coming. Everyone has probably heard the saying that if it sounds too good to be true, for example property values skyrocketing for years in a row, then it probably is too good to be true. This is common wisdom that seems to have been lost on millions upon millions of whiners.
I think most were just blinded by greedy visions of using idle residential land as an investment from which to profit.
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: Am I the only one who gets annoyed by all these bitter "homeowners" -
Posted by: timbuk2-2
» But you didn't have to buy and, even if your home became overvalued, you could afford it
Posted by: rancespergl
» Just because you're a "life-long renter" doesn't make your idea great.
Posted by: maxpayne
» I'm a life-long working-class renter who rents in America's inner cities
Posted by: rancespergl
» Sir, most people don't live in inner cities either. There are the suburbs and rurals too.
Posted by: maxpayne
Comments are closed-
Posted by: undrgrndgirl on Mar 19, 2009 3:11 PM
Current rating: 4 [1 = poor; 5 = excellent]
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» RE: renters are probably getting screwed worse...
Posted by: Javan
» RE: renters are probably getting screwed worse...
Posted by: northofthecity
Comments are closed-
Posted by: dayahka on Mar 19, 2009 3:49 PM
Current rating: 2 [1 = poor; 5 = excellent]
As for the possible losses, well it all depends on how new you are. Some places require a 6 or 12 month lease, with two months deposit--in case you make a midnight run for the border or wreck the place. After that, it's usually month to month and your deposit could be reduced to just one month's worth, which means you'd lose only at most one month's rent if the bank threw you out. So, that's not too bad, as many places deduct for cleaning and so on from your deposit, and many people just leave and forget the deposit as a loss as they take off for what they make think is greener pastures.
You face these risks even in a good economy. And if you check out your apartment house before you move in, you lessen the chances of your being ripped off. Many small landlords make good money off their rentals, even if only partially filled, enough to pay any mortgage and also leave themselves a princely sum to live on.
So, basically, I don't think this is as dire a situation as you make it out to be. You're just joining the gloomy doomer crowd with yet one more "sky is falling" scenario.
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: Yes, but some rents are cheaper
Posted by: northofthecity
» RE: Yes, but some rents are cheaper
Posted by: djnoll
» RE: Yes, but some rents are cheaper
Posted by: northofthecity
» RE: Yes, but some rents are cheaper
Posted by: djnoll
» RE: Yes, but some rents are cheaper
Posted by: djnoll
» RE: Yes, but some rents are cheaper
Posted by: northofthecity
» RE: Yes, but some rents are cheaper
Posted by: djnoll
Comments are closed-
Posted by: Tony D on Mar 20, 2009 12:22 AM
Current rating: Not yet rated [1 = poor; 5 = excellent]
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» RE: Anthony D'Auria
Posted by: northofthecity
Comments are closed-
Posted by: Jay Randal on Mar 19, 2009 12:11 AM
Current rating: 5 [1 = poor; 5 = excellent]
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: What a horrible mess former Pres. Dubya caused!
Posted by: northofthecity
» RE: What a horrible mess former Pres. Dubya caused! REPLY
Posted by: Jay Randal
Comments are closed-
Posted by: matt_gerchow on Mar 19, 2009 2:58 AM
Current rating: 1 [1 = poor; 5 = excellent]
As everything rolls down hill, where are all the people at the bottom of the hill going to live?
We are still a long ways from getting out of this crisis, but at the end of the day, we will all survive.
Regards,
Matt Gerchow, CEO
Real-Estate-Investing.com
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: enters and Owners Left Homeless
Posted by: gar1948
» RE: enters and Owners Left Homeless
Posted by: northofthecity
» RE: enters and Owners Left Homeless
Posted by: djnoll
» Same place as always
Posted by: Karina
Comments are closed-
Posted by: Zipidee DooDah & Dipidee DooDog on Mar 19, 2009 5:11 AM
Current rating: 5 [1 = poor; 5 = excellent]
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» I doubt that renting turns out to be more expensive than buying in most cases.
Posted by: rancespergl
» Neither does your lofty idea that being a life-long renter is the "panacea".
Posted by: maxpayne
» RE: xcellent article. Renting isn't safe either.
Posted by: snax
» RE: xcellent article. Renting isn't safe either.
Posted by: JenniferBedingfield
» That can be true. My former apt landlord ridiculously raised its monthly fees and yet
Posted by: JenniferBedingfield
Comments are closed-
Posted by: jmndodge on Mar 19, 2009 6:06 AM
Current rating: 5 [1 = poor; 5 = excellent]
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: renters
Posted by: snax
» RE: renters
Posted by: and_abottleofrum
Comments are closed-
Posted by: HANGTRAITORS on Mar 19, 2009 8:09 AM
Current rating: 4 [1 = poor; 5 = excellent]
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: Landlesss Peasant Fucks
Posted by: northofthecity
Comments are closed-
Posted by: anna_2 on Mar 19, 2009 8:18 AM
Current rating: Not yet rated [1 = poor; 5 = excellent]
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: scrow accounts question
Posted by: gar1948
» RE: scrow accounts question
Posted by: katjac2
Comments are closed-
Posted by: and_abottleofrum on Mar 19, 2009 8:47 AM
Current rating: 2 [1 = poor; 5 = excellent]
Most should have seen this crash in property values coming. Everyone has probably heard the saying that if it sounds too good to be true, for example property values skyrocketing for years in a row, then it probably is too good to be true. This is common wisdom that seems to have been lost on millions upon millions of whiners.
I think most were just blinded by greedy visions of using idle residential land as an investment from which to profit.
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: Am I the only one who gets annoyed by all these bitter "homeowners" -
Posted by: timbuk2-2
» But you didn't have to buy and, even if your home became overvalued, you could afford it
Posted by: rancespergl
» Just because you're a "life-long renter" doesn't make your idea great.
Posted by: maxpayne
» I'm a life-long working-class renter who rents in America's inner cities
Posted by: rancespergl
» Sir, most people don't live in inner cities either. There are the suburbs and rurals too.
Posted by: maxpayne
Comments are closed-
Posted by: undrgrndgirl on Mar 19, 2009 3:11 PM
Current rating: 4 [1 = poor; 5 = excellent]
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: renters are probably getting screwed worse...
Posted by: Javan
» RE: renters are probably getting screwed worse...
Posted by: northofthecity
Comments are closed-
Posted by: dayahka on Mar 19, 2009 3:49 PM
Current rating: 2 [1 = poor; 5 = excellent]
As for the possible losses, well it all depends on how new you are. Some places require a 6 or 12 month lease, with two months deposit--in case you make a midnight run for the border or wreck the place. After that, it's usually month to month and your deposit could be reduced to just one month's worth, which means you'd lose only at most one month's rent if the bank threw you out. So, that's not too bad, as many places deduct for cleaning and so on from your deposit, and many people just leave and forget the deposit as a loss as they take off for what they make think is greener pastures.
You face these risks even in a good economy. And if you check out your apartment house before you move in, you lessen the chances of your being ripped off. Many small landlords make good money off their rentals, even if only partially filled, enough to pay any mortgage and also leave themselves a princely sum to live on.
So, basically, I don't think this is as dire a situation as you make it out to be. You're just joining the gloomy doomer crowd with yet one more "sky is falling" scenario.
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: Yes, but some rents are cheaper
Posted by: northofthecity
» RE: Yes, but some rents are cheaper
Posted by: djnoll
» RE: Yes, but some rents are cheaper
Posted by: northofthecity
» RE: Yes, but some rents are cheaper
Posted by: djnoll
» RE: Yes, but some rents are cheaper
Posted by: djnoll
» RE: Yes, but some rents are cheaper
Posted by: northofthecity
» RE: Yes, but some rents are cheaper
Posted by: djnoll
Comments are closed-
Posted by: Tony D on Mar 20, 2009 12:22 AM
Current rating: Not yet rated [1 = poor; 5 = excellent]
[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]
» RE: Anthony D'Auria
Posted by: northofthecity
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