Renters at risk from sub-prime foreclosures

On April 13, 2008, the New York Times published on the front page of the real estate section an article entitled “Even Renters Aren’t Safe.” The article noted that “many renters may believe that they have avoided the chaos of the sub-prime loan crisis and the mortgage meltdown simply by renting and not buying, but they may not be as insulated as they think. Buildings with tenants are going into foreclosure as well.”

Although the article focuses primarily on New York City, unfortunately this is a situation that is occurring in New Jersey as well. The impacts of foreclosures on renters were identified in the article as:

Foreclosures can have an impact on tenants in lots of ways, but there are two sets of problems that most will face. The first and most daunting is eviction. The second is a loss of services, which can mean anything from having to fix your own clogged pipes to losing heat in the winter.

To read the full article click here.