Renters, Soldiers Feeling Foreclosure Pain

Reuters (06/16/08); Rucker, Patrick
The Mortgage Bankers Association reports that about 20 percent of recent foreclosures have been against investors who did not live in the home, but the group believes the number could be higher--partly because many investors sought the financing advantages of having property categorized as owner-occupied. For tenants who are in good standing on their rent payments--including a good many enlisted persons--a notice of foreclosure means they may only have a couple of months to less than a week to remain in the home. Nevada Legal Services, which estimates that 5,000 renting families have been forced out of their homes in the past 18 months, says lenders do not know how to deal with such tenants. "We did speak with one bank lawyer who said the liability is so extreme that it's worth it to just let the house stay empty," says Nevada Legal Services director Anna Marie Johnson.