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Sunday, October 19, 2008

Renters Kicked Out When Foreclosures Strike

From Realtor Magazine Online, Daily Real Estate News October 17, 2008

Nearly 15 million renters, 40 percent of the total, live in single-family homes, townhouses, condos or duplexes, according to the U.S. Census.

These types of properties tend to be owned by small investors, and those investors have recently been plagued by foreclosures. When a home is taken back by the bank, renters are forced to leave.

"It's a huge issue, and it's one that until recently has flown under the radar," said Danilo Pelletiere, research director at the National Low Income Housing Coalition. "Renters haven't been addressed by some localities because they have been focusing on home owners."

Some states, including California, Ohio and Illinois, have passed laws making it mandatory for mortgage holders to give tenants of foreclosed properties time to find an alternative.

Other states, including Indiana, Minnesota, Rhode Island and Washington, have considered tenants’ rights bill, but they have died before coming to a vote.

Source: The Associated Press, Adrian Sainz (10/16/2008)

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