Articles April - August 2008
Scott, S. (2008, Aug. 30). “Region’s Flurry of Foreclosures Focused in Brunswick County.” Wilmington Star News Online. Available at http://www.starnewsonline.com/article/20080830/ARTICLES/808300319/0/
NEWS4520&title=Region_s_flurry_of_foreclosures_focused_in_Brunswick_County
Some foreclosures in the Wilmington area are the result of investors over-extending themselves in beach communities, but most are owners and landlords who have seen the job market sour and living expenses rise. The Brunswick Family Assistance Agency helps delinquent owners and “many more renters who need a new place after losing the previous one” to foreclosure.
Wise, J. (2008, Aug. 30). “Renters Feeling Mortgage Crisis Shockwaves.” The Durham News. Available at http://www.thedurhamnews.com/front/story/157589.html
The article highlights the various ways in which low-income households have been affected by the foreclosure crisis: low-income owners may not have the financial resources to maintain ownership after a job loss; housing agencies that typically counsel renters are diverting their resources to delinquent owners; rental costs are escalating as more households choose to or have to rent; low-cost housing is more difficult to build because fewer investors are interested in housing tax credits that often spur development; and landlords face foreclosure, leading to the eviction of renters.
Twarowski, C. (2008, Aug. 30). “The Luck of the Landlords.” Washington Post.
Available at http://www.washingtonpost.com/wp-dyn/content/story/2008/08/29/ST2008082902045.html
The foreclosure crisis has led to an increase in the number of rental options available in “the shadow market,” which refers to single-family homes and condos that are rented by owners who choose not to sell until home values recover. Despite this greater supply and a slightly higher vacancy rate in the D.C. multifamily rental market, rents are increasing because demand remains strong.
Wilkison, B. (2008, Aug. 29). “Renters Rocked by Foreclosure Evictions.” Visalia Times-Delta. Available at http://www.visaliatimesdelta.com/apps/pbcs.dll/article?AID=/20080829/NEWS01/808290340
Foreclosures on rental properties have spiked in Visalia in recent months. Renters in properties with professional management companies may be slightly less at risk of an unanticipated eviction because landlords may be more forthcoming with managers regarding their financial situation, allowing some companies to give tenants advance notice. Some management companies will also offer to return last month’s rent and the security deposit.
Pope, J. (2008, Aug. 28). “Impending Foreclosures Leave Renters in Limbo.” Las Vegas Sun. Available at http://www.lasvegassun.com/news/2008/aug/28/impending-
foreclosures-leave-renters-limbo/
Of the 18,220 homes in foreclosure in Nevada during the last few months of 2007, half were likely rental properties because the owner’s address differed from the address of the foreclosed unit.
Associated Press. (2008, Aug. 27). “How to Protect Yourself from Rental Fraud.” New York Daily News. Available at http://www.nydailynews.com/money/2008/08/27/2008-08-27_how_to_
protect_yourself_from_rental_frau.html
Rental fraud takes two common forms. The first is a landlord accepting up-front rental payments and security deposits with no intention of renting the unit. An increasingly common practice is when a landlord leases a unit already in foreclosure to an unsuspecting tenant. Catholic Charities in Riverside and San Bernardino Counties, CA, is assisting renters victimized by the latter type of fraud weekly. Renters should protect themselves by checking for default notices at the county recorder’s office and verifying property ownership at the assessor’s office.
Heisel, W. (2008, Aug. 26). “Foreclosures Ensnare Low-Income Renters.” Los Angeles Times. Available at http://www.latimes.com/business/la-fi-section26-2008aug26,0,3965437.story
Renters with Section 8 vouchers are increasingly being displaced as their landlords fall behind on their mortgages. Statewide estimates are not available but “the number is significant -- and growing,” with more than 100 such cases in July alone in Sacramento County. Although landlords are supposed to give 90-days notice before evicting a Section 8 tenant, some landlords wait until the last minute in order to collect as much rent as possible.
Dembosky, A. (2008, Aug. 26). “Foreclosures Mean Crises for H.I.V. Positive Renters.” New York Times. Available at http://www.nytimes.com/2008/08/26/nyregion/26hiv.html Like renters elsewhere, H.I.V. positive renters in New York are having their utilities shut off and facing eviction as their landlords lose properties through foreclosure. Exacerbating the problems for H.I.V. positive renters, however, is the fact that despite a city ordinance that prohibits “source of income” discrimination, prospective landlords are reluctant to accept rental assistance payments provided by the city’s H.I.V./AIDS Services Administration.
Davidson, M. (2008, Aug. 21). “Housing Market Offers Mixed Bag.” Broomfield Enterprise. Available at http://www.broomfieldenterprise.com/news/2008/aug/21/housing-market-offers-mixed-bag/ Foreclosures in Broomfield, CO, have risen 48% in the last year, and the apartment vacancy rate has remained fairly steady, rising from 5% to 6.3%. The rate is much lower than the 10% that characterized Broomfield in 2005, and apartment managers are reporting strong demand leading to higher, pre-2005 rents.
Mitchell, E. “Foreclosed Properties Being Turned into Rentals.” (2008, Aug. 18) Contra Costa Times. Available at http://www.contracostatimes.com/ci_10237698?nclick_check=1 In the San Francisco Bay Area, where foreclosure sales accounted for 29% of all sales of existing homes in June, investors are purchasing foreclosed properties and putting them up for rent. Because many families are losing their homes to foreclosure, rental demand is great, so there is uncertainty how this additional rental supply will affect overall prices or prices of lower-cost units.
Jackson, M. “Foreclosures Bring Bargain Prices.” (2008, Aug. 16) The Denver Post. Available at http://www.denverpost.com/business/ci_10219780
As the number of homes in foreclosure rises, so does the number of homes selling for less than $100,000 in Denver. Investors are purchasing the homes and renting them for more than their mortgage payments. With the rental vacancy rate for single-family homes and condos at a very low 2.7%, these foreclosed properties are renting for as much as $900 - $1,100 per month in some cases.
Jowers, K. “New Law Helps Renters Forced Out by Foreclosure.” (2008, Aug. 17) Army Times. Available at http://www.armytimes.com/news/2008/08/army_foreclosure_081708w/ The recently passed Housing and Economic Recovery Act of 2008 stipulates that the Pentagon will cover the moving costs of active duty personnel who are displaced when their rental property goes through foreclosure.
Spielman, F. “New Laws to Protect Renters from Foreclosure.” (2008, Aug. 15) Chicago Sun-Times. Available at http://www.suntimes.com/business/currency/1108898,rent081508.article Chicago’s mayor unveiled plans to provide rental assistance and expanded legal services to renters evicted from foreclosed properties in the city. These measures would complement state legislation awaiting the governor’s signature that would give renters at least 90 days to vacate a foreclosed unit. It is estimated that small multi-unit rental buildings represented 35% of foreclosures in Chicago in 2007 and that as many as 2,500 families in the city could be evicted as a result of foreclosure this year.
Temple, J. “Foreclosure’s Hidden Victims.” (2008, Aug. 14) San Francisco Chronicle. Available at http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/08/15/MNB31267IR.DTL Housing counselors in San Francisco report a spike in the number of renters being threatened with eviction or having their utilities cut-off as a result of foreclosure, despite laws that protect them from such actions. Three tenants’ groups have counseled around 130 such cases already this year and expect that many more in this situation are not seeking counseling.
Singletary, M. “Color of Money Chat.” (2008, Aug. 14) Washingtonpost.com
Available at w ww.washingtonpost.com/wp-dyn/content/discussion/2008/08/12/DI2008081201531.html To avoid renting from a landlord who is delinquent on his/her mortgage payments and at risk of foreclosure, Singletary suggests asking to see recent statements from the lender. In addition, a reader made the following comment: “I work as a foreclosure paralegal and I see renters evicted all the time because the owner has defaulted on the loan and the renters have no idea. I'm not sure if the owner would go for this, but perhaps the owner would sign a waiver allowing the mortgage company to discuss the account with you, that way you can check periodically to make sure the owner is current on payments.”
Appel, A. “Housing Authority Tackles Prison Re-Entry, Foreclosure Crisis.” (2008, Aug. 14) New Haven Independent. Available at http://www.newhavenindependent.org/archives/2008/08/exoffenders_and.php
The Housing Authority of New Haven, CT, will begin reserving 50 tenant-based housing vouchers to prevent homelessness for renters who lose their homes to foreclosure. To maintain homeownership levels in areas hardest-hit by foreclosure, some vouchers may also be project-based as a way to guarantee rental income for investors at risk of becoming delinquent on their mortgage.
Eagleburger, A., “(Cheap) Available Apartments.” (2008, Aug. 12) The Arizona Republic. Available at http://www.azcentral.com/arizonarepublic/business/articles/
2008/08/12/20080812biz-renters0813-ON.html
Although rents in 2008 are much higher in many large metropolitan areas than they were last year, overall rents in Phoenix are 9.3% lower. Home values are being suppressed by a flood of bank-owned properties on the market, and rather than selling for a loss, owners are opting to rent their homes. Surpluses of single-family rental units and units originally developed as condominiums have led to high rental vacancy rates and lower overall rents, although it is unclear what effect, if any, this is having on the affordability of low-cost units.
Hutson, W., “Apartment Renters Caught in Foreclosure Net.” (2008, Aug. 13) Chicago Defender. Available at http://www.chicagodefender.com/article-1559-apartment-renters-caught-in-foreclosure-net.html Cook County, the largest county in Illinois with over 5.3 million residents, recorded more than 38,467 foreclosure filings in 2007, up 11,180 from 2006. According to the executive director of the Metropolitan Tenants Organization (MTO), the organization received 50 calls last month from renters living in foreclosed units when it typically only receives five such calls each month.
Garrahan, M., “Tenants Pay as Speculators Walk Away.” (2008, Aug. 11) Financial Times. Available at http://www.ft.com/cms/s/0/a5ccb07a-67d5-11dd-8d3b-0000779fd18c.html
?nclick_check=1 In Merced, CA foreclosures have risen 200% since the same time last year, accounting for 75% of all property sales in the city over the past six months. Home values have fallen 50% since the housing market peaked in 2005. The foreclosure crisis in Merced has displaced hundreds of renters while also causing many real estate, lending, and construction companies to relocate to new areas.
Moore, S., “A Program Moves Poor to Suburbs, Tensions Follow.” (2008, Aug. 9) The New York Times. Available at http://www.nytimes.com/2008/08/09/us/09housing.html?_r=2&sq=Section%208&st =cse&adxnnl=1&oref=slogin&scp=1&pagewanted=print&adxnnlx=1218634513-4QzVwDyuOX+LIVPaC+UwUQ
As many suburbs struggle to cope with foreclosures and declining property values, rising numbers of vacant homes have brought along their own set of problems. Property owners have sought out low income renters to fill the homes left vacant by foreclosures. In the Oakland, CA suburb of Antioch, the number of Section 8 households grew by 50% from 1,000 in 2003 to 1,500 in 2005, bringing many housing voucher recipients into the suburb from nearby urban areas. A recent study from the University of Memphis found that crime tends to migrate with voucher recipients.
ElBoghdady, D., “Foreclosure Crisis Catching Renter Off Guard.” (2008, Aug. 8) The Washington Post. Available at http://www.washingtonpost.com/wp-dyn/content/article/2008/08/07/ AR2008080703574.html?hpid=topnews Several cities and states around the country, as well as some members of Congress, are working to increase the amount of time renters have to move out of a foreclosed property before the new owner can evict them. On Monday, such protections will take effect in Baltimore just as the District of Columbia will soon begin airing television ads to inform tenants of their rights.
Bennett, K., “Renters Caught When Banks Foreclose on Landlords.” (2008 Aug. 5) Voice of San Diego. Available at http://www.voiceofsandiego.org/articles/2008/08/05/news/02renter080508.txt More than one quarter of all single-family homes in foreclosure in CA have renters living in them. Following CA legislation passed and signed by the governor in July, tenants now have 60 days instead of 30 to remain in foreclosed homes, enabling them to save money that would otherwise have been spent on rent and find a new place to live.
“Lawmakers Plan Housing Law Changes.” (2008, Aug. 5) AP.
Available at http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/08/05/state/
n175921D64.DTL&type=newsbayarea A panel chaired by Nevada Assemblyman Marcus Conklin (D-Las Vegas) wants the 2009 Legislature to enact housing laws, ranging from fines for illegal real estate practices to more protections for renters. The proposed bills would require landlords to notify renters of any defaults or pending foreclosures. Tenants would also be able to break leases on units with a notice of default and would also receive a 60-day notice before being evicted from a foreclosed property.
As part of the article “A Renter’s Nightmare” in the July/August edition of The Chicago Reporter, Madelaine Burkert provides a list of tips for renters to help them avoid eviction. The tips include recommendations for renters during all phases of their lease, including precautions to take before a lease is signed, while renting, after a foreclosure, and others to take if all else fails.
Spence, B., “Apartment Occupancy in Stockton now at 96%.” (2008, Jul. 29) The Record. Available at http://www.recordnet.com/apps/pbcs.dll/article?AID=/20080729/A_NEWS/80729013/-1/rss02 High occupancy rates in San Joaquin County, CA have meant good news for apartment owners. However, with foreclosures increasing the stock of rental houses, decreasing monthly rents for rental-homes, which currently average around $300 more per month for rent than apartments, may stoop low enough to cut into the apartments market by next summer.
Albrecht, B., “Program to Notify Renters of Foreclosure Filings.” (2008, Jul. 26) Plain Dealer Reporter. Available at http://www.cleveland.com/community/plaindealer/index.ssf?/base/cuyahoga/ 1217061268229130.xml&coll=2#continue
A new program in Cuyahoga County, OH, which includes Cleveland, will begin notifying tenants if the property they are renting has been foreclosed on. Renters would then have around six months to move if they needed to vacate a property. The program matches residential rental properties with public foreclosure filings, notifying any tenants of foreclosure while also offering them local resources to help find a new housing. According to a recent report from Policy Matters Ohio, a Cleveland-based research group, one third of foreclosures in the county involve rental property.
Wyche, P., “Foreclosures Rise, and Rental Agents Take Notice.” (2008, Jul. 14) Tri-Cities Business Review. Available at http://www.mlive.com/businessreview/tricities/index.ssf/2008/07/foreclosures_rise_and_rental_a.html
According to RealtyTrac, foreclosures in MI increased by almost 25% in May from the previous month, placing MI’s foreclosure rate fifth highest out of all states. Local rental agents have noticed an increase in rental traffic, but they expect demand for rental housing to continue given rising foreclosure rates.
Benman, P., “Renters Caught Up in Foreclosure Storm?” (2008, Jul. 13) The Times of Northwest Indiana. Available at http://www.thetimesonline.com/articles/2008/07/13/news/top_news/ doc39f867a9e35138b786257483006b36ab.txt
Banks who have foreclosed on non-owner occupied properties in Northwest IN have not been allowing renters to continue paying rent in order to stay in the properties. Many banks have been offering tenants $1,000 as an enticement to move out within a week of foreclosing on a property, known as “cash for keys.”
Graham, M., “Foreclosure’s Unseen Victims.” (2008, Jul. 12) The San Diego Union-Tribune. Available at http://www.signonsandiego.com/news/metro/20080712-9999-1ez12fore.html San Diego County is home to around 50 foreclosures a day, with experts saying that at least one-third but as many as two-thirds of all the area’s foreclosed homes are rental properties owned by investors. When headed towards default, many landlords have ceased making mortgage payments and relocated, taking with them many of their tenants’ monthly rents and security deposits.
Sondag, S., “Governor Signs Law to Help Homeowners Keep Their Properties.” (2008, Jul. 9) San Francisco Chronicle. Available at http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/07/09/ BA3411LL25.DTL&type=politics
California Governor Arnold Schwarzenegger signed into law a bill that, in 60 days, will require mortgage holders to contact homeowners 30-days in advance before issuing a notice of default. Additionally, the law immediately gives tenants a 60-day period to move out of foreclosed properties before they could face eviction.
Handelman, D., “Low Income Renters Feel Foreclosure Burn.” (2008, Jul. 3), Medill Reports, Northwestern University. Available at http://news.medill.northwestern.edu/washington/news.aspx?id=94571
Finding other affordable places to live has become increasingly difficult for low income renters who have had to move out of foreclosed properties. This situation could lead to rising levels of homelessness. Renters can also be forced out of “foreclosed property at a faster pace than a homeowner, who typically gets notice that a crisis is looming.” Low income tenants struggling to find affordable housing options and pay for moving costs have been exacerbating the crisis.
Jackson, P., “California Senate Approves Foreclosure Warning Bill.” (2008, Jul. 3) Housing Wire. Available at http://www.housingwire.com/2008/07/03/calfornia-senate-pushes-out-foreclosure-warning-bill/ The California Senate passed new legislation that would require not only more and earlier warnings of foreclosure to homeowners, but also would implement fines to owners of foreclosed properties that “fail to adequately maintain them.” Lenders would have to speak with borrowers concerning restructuring options before beginning the foreclosure process. Additionally, owners of rental property would have to notify any tenants of foreclosure 60-days before they can be legally removed.
Calamaio, C., “Foreclosures hurting renters, too.” (2008, Jul. 2) Tucson Citizen.
Available at http://www.tucsoncitizen.com/ss/byauthor/89883
In the first quarter of 2008, there were 1,958 foreclosures in Pima County, AZ with many affecting renters. That’s an increase of 118% from the same quarter in 2007, according to findings in a study by the Southwest Fair Housing Council. Currently, AZ tenants have no legal protection against evictions after a back forecloses on the landlord. The Southwest Fair Housing Council plans to research the impacts foreclosures have had on renters in Pima County to provide information to the City Council by the end of August.
Jessup, K., “Foreclosures Jump 66% in Kalamazoo: Housing Services ‘Swamped’ with Requests for Counseling.” (2008, Jul. 1) Kalamazoo Gazette. Available at http://blog.mlive.com/kzgazette/2008/07/kalamazoo_foreclosures_jumped.html
The foreclosure crisis is not isolated to owner-occupied households as one in four foreclosures involves rental property. One Pennsylvania study showed that values of households located 150 feet from a vacant, foreclosed property decline $7,600 while those located 450 feet away witness a decline of $3,500 in value. Foreclosures in Kalamazoo, as elsewhere, could increase city municipal costs, as local governments must maintain abandoned properties.
Schmitz, C., “Rental Runaround.” (2008, Jul./Aug.) The Chicago Reporter.
Available at http://www.chicagoreporter.com/index.php/c/Sidebars/d/Rental_Runaround Renters evicted from foreclosed properties are experiencing difficulty in finding rental housing in Chicago’s already saturated market. Currently, Chicago has an 80,000-unit shortage in the affordable rental housing stock for low income families. However, according to The Apartment People, a free apartment locating service, good deals still exist for renters in Chicago as long as they are flexible as to which neighborhood they want to live in and are open to living in a basic apartment.
Virella, K., “A Renter’s Nightmare.” (2008, Jul./Aug.) The Chicago Reporter.
Available at http://www.chicagoreporter.com/index.php/c/Cover%20Stories/d/A_Renter's_Nightmare Banks who have repossessed properties due to foreclosures have been telling the tenants of such foreclosed properties to vacate “immediately” instead of the 30 days required by IL law. Mortgage companies continue to evict tenants as quickly as possible in order to resell them and recoup their losses. The article offers several recommendations for renters to help them before, during, and after any potential foreclosures.
Virella, K., “D.C. Renters Buffet Storm.” (2008, Jul./Aug.) The Chicago Reporter.
Available at http://www.chicagoreporter.com/index.php/c/Sidebars/d/D.C._Renters_Buffet_Storm Washington, DC is one of three U.S. jurisdictions that protect tenants from eviction following a foreclosure, along with NJ and NH. However, Research Director Danilo Pelletiere of the National Low Income Housing Coalition states that such legislation does not guarantee more protection for renters, citing the need for its enforcement.
Armour, S., “Renters Join Ranks of Nation’s Homeless.” (2008, Jun. 26) USA Today. Available at http://www.knowledgeplex.org/news/1912921.html
Since the foreclosure crisis began in 2007, almost 61% of local and state homeless coalitions have reported a rise in homelessness, according to a study released in April by the National Coalition for the Homeless. The study also states that while the majority of displaced renters and homeowners have moved in with friends and relatives or have moved into homeless shelters, many are still on the streets. With shelters filling up, families struggle to find affordable housing.
Drash, W., Gutierrez, T., “Rental Foreclosures Stun Tenants.” (2008, May 30) CNN. Available at http://poorbuthappy.com/yourthing/post/rental-foreclosures-stun-tenants-- cnn-reports/ According to Realtytrac, 38% of the 720,000 homes—roughly 280,000—in foreclosure nationwide at the end of April were not occupied by the owner, but were a collection of rental properties, investment properties, and second homes. Several states in the Northeast have begun implementing laws to protect renters from eviction if a landlord defaults on mortgage payments.
Publications
Foote, C. L., Gerardi, K., Goette, L., and Willen, P. S., Subprime Facts: What (We Think) We Know about the Subprime Crisis and What We Don’t (2008, May 30). Public Policy Discussion Papers, Federal Reserve Bank of Boston.
Available at http://www.bos.frb.org/economic/ppdp/2008/ppdp0802.pdf
Foreclosures in MA comprise a disproportionate share of multi-family dwellings, defined as properties containing two-to-four separate units, as they account for only 10% of residential purchases but 30% of the state’s current foreclosures. Since most units in multi-family properties are rented, the pool of families that have been directly affected by foreclosures in MA is significantly larger than the number of foreclosure filings, affecting both property owners and any renters.
Patel, P., “Foreclosure Can Push Renters Out the Door.” (2008, Apr. 30) Houston Chronicle, p. A1. Available at http://www.chron.com/CDA/archives/archive.mpl?id=2008_4559138 Investors lured into the mortgage industry by low teaser rates hoped to sell the property before the rates adjusted upward have been unable to do so, fueling the number of foreclosures. Texas law requires new owners of foreclosed property to give renters living in such property 30 days to vacate if they are up-to-date on rent payments, but only three days if any outstanding rent payments still exist.
Armour, S., “Renters Can’t Escape Housing Foreclosure Crisis.” (2008, Apr. 25) USA Today. Available at http://www.usatoday.com/money/economy/housing/2008-04-21-rent-rising-eviction_N.htm Average rent is projected to rise 5.3% in 2008, according to the National Association of Realtors, up from 3.1% in 2007. Several factors have been contributing to the increased demand in rental markets: renters are waiting for home prices to drop, renters are finding it harder to buy, and high foreclosure rates have made many former homeowners enter rental markets.
Dornan, G., “Renters the Forgotten Victims in Foreclosures.” (2008, Apr. 23) Nevada Appeal. Available at http://www.nevadaappeal.com/article/20080423/NEWS/208788668 Evidence from Nevada suggests that some landlords continue to collect rent from tenants while also neglecting to continue paying mortgage payments due to an impending foreclosure. Nevada Legal Services recommends requiring lending companies to inform tenants of a foreclosure and give them the option to break the lease. Other recommendations include allowing the tenant to pay rent directly to the lender in exchange for the right to temporarily remain in the property and/or giving the tenant the option to purchase the property.
Hays, E., Belankaya, V., and Lysiak, M., “Foreclosure Crisis Hurts Brooklyn Renters, Too.” (2008, Apr. 22) New York Daily News.
Available at http://www.nydailynews.com/ny_local/brooklyn/2008/04/22/2008-04-22_loan_ crisis_hurts_brooklyn_renters_too_.html
More than 7,000 Brooklyn renters lost their apartments due to foreclosures last year, placing Brooklyn’s foreclosure numbers for renters at the top of New York City’s five boroughs. Landlords facing high mortgages have passed the financial burden onto renters, causing rents, along with the increased rental demand as a result of foreclosures, to become more expensive.
Hopkinds, C., “Foreclosure Moves Open Gray Area in Preemption.” (2008, Apr. 21) American Banker. Available at http://www.onwallstreet.com/asset/article/574241/news/foreclosure-moves-open-gray-area-preemption.html
In response to weak and delayed federal action to slow the foreclosure crisis, local and state legislation is now working to slow the process down. As of April 21, only MD had passed legislation on foreclosure prevention, creating a five-month moratorium on foreclosures. However, states such as CT and NJ are considering a six-month moratorium on foreclosures and NY and MI are considering a yearlong moratorium.
“Harris, E. A., “Even Renters Aren’t Safe.” (2008, Apr. 13) The New York Times.
Available at http://www.nytimes.com/2008/04/13/realestate13cover.html?ref=realestate
According to census statistics from 2006, 65.6% of all New York City housing was renter occupied, compared with 32.7% nationwide. Vicki Been, Director of the Furman Center for Real Estate and Urban Policy at the New York University, stated that the foreclosure crisis is affecting more renter households in New York City than in other parts of the country. The Furman Center estimated that in 2007 38,000 residents facing foreclosure were renters.
Nieves, E., “CA – Rural Communities Hit by Foreclosures.” (2008, Apr. 3) Associated Press. Available at http://freerepublic.com/focus/f-news/1996298/posts The foreclosure crisis in rural America may be even more widespread than in urban areas. Research by the Housing Assistance Council, a Washington-based nonprofit, has found that foreclosures in rural areas are at least as prevalent as those in cities. “Rural residents often have fewer banking institutions to choose from than city dwellers, and can fall victim to high interest rates and predatory lending practices.”
