Tenants in Trouble

Foreclosure reality is not only affecting homeowners but renters as well. High mortgage payments are not always realistic rental payments and many homeowners who can't sell their home because of the market drop, are renting these homes. These new landlords are taking a loss every month. A loss many cannot absorb.

As the noose tightens around strapped homeowners necks, many are letting their rental properties go into foreclosure. In some cases, homeowners continue accepting rent while discontinuing mortgage payments.

Now renters are feeling the foreclosure pinch as homes are being foreclosed out from under them. A recent renter in Corona found this out the hard way when he was forced to move from his rental home because the home had been foreclosed by the bank. Mr Renter had not only made his payments on time but had provided a hefty security deposit he most likely won't get back. The homeowner purchased with 100% financing, then pocketed the security deposit and several months of rent payments while never contributing anything to the mortgage payment.