Renters evicted in wave of foreclosures
August 15, 2008
The news is filled these days with stories about the housing foreclosures. I believe a lot of us think about the homeowners, but there are some other casualties in this situation.
One group of people who are facing eviction because of foreclosure is renters. It’s common for landlords to ask potential renters for their financial background and to check credit reports. It seems less common for renters to ask potential landlords about their financial stability and to make sure the landlord is current on his or her mortgage for the rental property.
As a result, tenants who have diligently paid their rent each month are learning too late that the property owner has defaulted on their home loan. The tenants must then find a new place to live.
There was an extreme example of this recent reported in the
The catch? The tenants operated a nursing-home facility. Most of the people being forced to vacate were bed ridden and had to be removed by ambulance.
The business owners had no idea the owner wasn’t paying his mortgage. This situation is an extreme example, but renters being evicted because of foreclosure is happening quite frequently.
If you are considering renting, what can you do to protect yourself?
Take some time to check out your potential landlord before you sign a lease. Research the rights of renters in your particular state and make sure you understand those rights. The laws which protect renters vary from state to state. You can find information about tenants’ rights through the U.S. Department of Housing and Urban Development at www.hud.gov.
In a story on MSNBC, real estate attorney Kevin Jursinski recommended renters ask their potential landlords some difficult questions, such as if they are current on their mortgage. If they say “yes,” ask to see their paperwork to prove it.
Another recommendation from Jursinski is to check with your county’s property tax and clerk of courts offices to see if the landlord is actually the owner of the property and if there have been any lawsuits filed against the owner.
Another good step is to check with the homeowner’s or condo association, if applicable, to see if the property owner is up to date on all of their dues.
“Extreme” foreclosure
July 29, 2008
Call it an extreme foreclosure. An Atlanta-area home demolished and rebuilt on the hit ABC television series “Extreme Makeover: Home Edition” has become one of the latest statistics in the foreclosure crisis.
When I saw this story in the Washington Post my first thought was, “How could that happen?”
I must admit that I don’t really watch the show, but I know about it. I don’t live under a rock after all. I was under the impression that the home was pretty much paid for by the show.
As I continued to read I learned that not only was the house rebuilt, but the family was given enough money to pay the taxes on the home for years as well as a home maintenance fund.
It turns out the family used their beautiful new home as collateral for a $450,000 loan and fell behind on the payments.
I was left a bit stunned by this. A family who was living in a sub-standard home with an overflowing septic tank was given the gift of a brand new home, reportedly the biggest on their block. They were also given money to maintain their home and money to put into their children’s college funds. After all of that good fortune, they’re going to lose it.
The family has refused to talk to most of the media, though they did tell one television station they used the loan for a business that ultimately failed.
Most news reports say the home is set to be auctioned off Tuesday. I did read one story that said the family had reached an agreement with the lender to stop the foreclosure.
I wish the family would speak more about their situation. ABC has released some statements, but mostly said the family’s financial situation is private. To a certain extent I agree. But, I also think a family that has accepted hundreds of thousands of dollars from the community owes it to the community to step up and accept responsibility for what has happened. They owe the sponsor companies and private volunteers an explanation, an apology, something.
Regardless of what put the family in this situation, it is ultimately someone else’s time and money that has been lost.
Another strange twist in the daily news of foreclosures …
Seek help if you’re facing foreclosure and feel depressed or panicked
July 25, 2008
Today I had originally planned to post the second part of “Living within you means.” However, I saw a story this morning that was very upsetting, and I think it’s worth addressing immediately.
A woman in Massachusetts committed suicide over the pending foreclosure of her home. You can read the story here.
This is a tragedy in so many ways. I have not seen details as to whether this woman tried to get any type of help, either psychologically or financially.
For anyone who is facing foreclosure, it is very important to know that there is help available in many forms. In terms of finances, seek out a reputable non-profit credit counseling agency that also offers housing counseling. A certified counselor may be able to put a halt to foreclosure proceedings, help you organize your finances and offer practical suggestions to get your finances under control.
You are not alone. Many people have found themselves in this unfortunate situation. There is no shame in asking for help.
If you are feeling depressed or panicked and cannot control your feelings, please seek out a psychologist who can help you work through these feelings. Many people face situations in their lives that they can’t handle on their own. Again, do not be embarrassed to get help.
Finally, if you have a family member or friend who is struggling financially or facing foreclosure, please check in with them. Watch for signs of depression or changes in mood.
You can get information about mental health, the signs of depression and other resources by visiting the National Alliance on Mental Illness at www.nami.org.
Storage lockers: Stuff to save and sell
June 30, 2008
I did not realize how much is going on in the lives of many Americans regarding storage lockers. Not that I necessarily should have been thinking about storage lockers.
For a short time I rented a storage locker to house my possessions. The lease on one apartment was up. I was planning on moving out of the area and didn’t want to renew, so I temporarily moved back in with my parents. Once I got a new job and apartment I got my stuff and stopped paying for storage.
I had assumed this was how storage worked for most people. You’re in some sort of transition and need a temporary place to keep your essential possessions.
Apparently this isn’t always the case.
There are people out there who are paying for storage simply because they have so much “stuff” that they don’t know what to do with it all. I know one of these people. He’s in his 30s and hanging on to toys and art projects from elementary school — along with a ton of other stuff he’s collected over the years. Most of it could go to the Goodwill or the trash bin.
M.P. Dunleavy addresses this topic in her latest article. It’s interesting to look at some of the numbers she cites as far as how much the storage locker business has expanded in the past couple of decades. It seems apparent that many of us simply have too much stuff.
(I will admit that I have too much stuff, and I’m trying to reduce the amount of unnecessary things I’m cramming into my home. I’m also not spending money every month just to store my things, which is important to note in these tough economic times.)
Having too much isn’t the only reason people are turning to storage.
A while ago I wrote about people selling their possessions in order to pay the bills and put gas in their cars. Yet another trend is emerging from the subprime mortgage meltdown and all-around tougher financial times: Storage auctions.
The New York Times ran this story about the increasing frequency of auctions at storage facilities. The auctions are held by the facility after the unit’s renter is delinquent on his or her payments for a certain period of time.
Bidders get barely a glimpse into the storage unit before they place their bids. Only after someone wins the bid do they get to find out exactly what’s inside.
For people who put their items into storage after a foreclosure, I would imagine it would be particularly difficult to see what amounts to nearly all of your possessions auctioned off, often for a minimal price.
Some people have even been found illegally living in their self-storage units after losing their homes.
On the flip side, some people are turning another’s misfortune into profit. Many bidders wade through their new items and resell them at flea markets or on online auction sites.
Do you pay every month to store “stuff?” What do you think about self-storage auctions? Have you ever attended this type of an auction? Have you ever had your possessions sold?
Pets feel the pinch of foreclosure
June 27, 2008
Foreclosures and rising prices aren’t just taking a toll on people. Pets are feeling the pinch, too.
Shelters across the country are overflowing with pets that were either: a) abandoned and left on their own when their owners lost their homes; b) given to the shelters by owners who lost their homes; c) given to shelters by people who simply can’t afford to care for them anymore.
Many people who must move are left trying to decide what to do with their pets. USA Today wrote about this problem.
Some pet owners are apparently afraid putting their animals, especially older animals, in a shelter will lead to their being euthanized. Instead these well-intentioned, if not misguided, people are leaving their pets in abandoned houses with food and water, or they are turning their pets loose. The USA Today story explains the problems with these options, both of which end up being worse than a shelter.
These stories in the Atlanta Journal Constitution and the New York Times also address the problem of homeless pets.
Some people simply can’t afford to care for their pets. Other people are renting homes or apartments and aren’t allowed to keep their furry friends.
Shelters are overflowing with pets. Many pets are being euthanized because shelters have too many animals to care for and no other option. Some of the stories of the pets, and their families, are heartbreaking. It’s bad enough that people have lost their homes, but then they have to give up pets that they regard as family members.
I’m asking myself what can be done about this situation.
If you are thinking getting a pet, first and foremost look at your budget and make sure you can afford it. Pets can be walking money pits. Make sure you not only have the financial resources for the initial costs and food every month, but also for any emergencies that may arise.
If you decide that you can comfortably afford a pet, consider adopting a pet from a shelter.
When I decided to get a cat several years ago I thought about getting a pure bred cat. Then I saw a Humane Society kitten that I couldn’t resist. He’s a little mischief-maker, but he’s a wonderful and entertaining member of our household. And I feel good knowing that I provided a home for an animal in need.
Check out shelters in your area and see if there’s a future member of your family just waiting for a home.
Oh, I should add one important note for anyone considering a pet … Please make sure that the pet you choose fits with your lifestyle. Too many pets also end up in shelters because someone purchased a particular breed of animal on a whim without researching what might fit in best with their family. Then when the dog is snappish or the cat scratches furniture, it ends up right back in the shelter.
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