Think just the people who bought homes are losing theirs in this crisis? Think again. Renters are now finding themselves homeless after investors are upside on loans they cannot pay back – meaning rentals are now being foreclosed on.
Analysts say international speculators and private-equity firms took on mortgage payments larger than their income from rents in such buildings. Some may have hoped they could eject rent-regulated tenants in favor of higher-paying ones.
In Los Angeles, foreclosures for buildings with five or more units totaled 78 — encompassing 1,344 units — in the first three quarters of 2009, compared with 49 buildings and 432 units over the same period last year, and 13 buildings and 239 units in the same period of 2007, according to the city’s housing department.
So while most people are worried that only homeowners are going into foreclosure, the truth is that people who had nothing to do with the real estate collapse are being hurt as well, which just isn’t fair. People and banks just got too damn greedy and now even the innocent are being sent packing because of others’ negligence. It’s a sad state of affairs out there…
via the Washington Post