Renters Hurt By Rising Defaults

As rental complexes go into foreclosure, renters are having a hard time getting necessary repairs.

Big surprise huh? Everyone is hurting in this recession, whether they are renter or home owners.

Foreclosures are expected to increase through next year despite all sorts of banking and political maneuvers to stem the tide.

The Washington Post reports:

NEW YORK — A new wave of foreclosures stands to hurt people who may have never taken out a mortgage: renters. In cities such as New York, Chicago and Los Angeles, where many investors are carrying upside-down mortgages on large rental buildings, some tenants are watching their homes fall apart along with the financing.

….Fannie Mae, which had bought much of the debt from the original lender, entered foreclosure proceedings for Sandiford's building early this spring. A state court appointed receivers.

In the meantime, the building on Manida Street has been beset by problems, according to tenants and their advocates, whose accounts were confirmed by the crumbling walls and damaged plumbing apparent on a tour of the property and its neighbor, also owned by Ocelot. Vandals stole the lock on the front door, giving squatters access to vacant apartments to sell drugs. Plumbing in the building was disrupted after the squatters broke through the walls and stole pipes to sell as scrap metal.