Foreclosures leave renters in the lurch
The San Francisco Chronicle is reporting :
“As the mortgage crisis claims more homes - more than 11,000 Bay Area residences were repossessed by lenders last year - an increasing number of tenants are facing rapid evictions by banks eager to partially recoup their losses by selling the properties. In November, a Chronicle analysis of Bay Area foreclosures showed that about one-fifth had nonresident owners. Presumably many of those investor-owners rented out their properties to produce income.
Foreclosure-related evictions of renters show how fallout from the mortgage meltdown can spread even to people who don’t own houses.
Tenants’ rights in such situations are minimal. If they live in a city with rent control, they are covered by its eviction regulations. Hayward, where Diharce and Vasquez live, does not have rent control for single-family residences.
Otherwise, renters are subject to state law, which generally requires 30 days notice. A foreclosure usually invalidates an existing lease, legal experts said.”
Sell My House said,
March 26, 2008 at 8:48 am
30-days notice is better than nothing. It would not be very nice if they had a long term lease on the property…but what can they expect. Maybe they will go buy their own home and stop renting.
bob said,
April 20, 2008 at 4:14 am
In my area, (south Orange County) the prices have fallen to such a low, that it now makes sence to buy. The after tax deduction benifit (what your left with at the end of the year) now equals what a renter would have to pay, and the well priced homes, (mostly forclosures) are selling with multiple offers.
Somesh said,
April 22, 2008 at 7:55 pm
Orange County Medians
Mar 01 - 292K
Mar 08 - 506K
I think they still have a long way to go…
bob said,
April 24, 2008 at 12:26 pm
In The O.C. in 1996 at the last bottom of the real estate cycle, the medium rents were $713 according to Orange County, Ca Census Info, and now according to Lansner as of yesterday’s O C Register article median rents of the OC is now $1,696. So if rents went up 238% since then, it would appear logical to assume that the median price of homes would do the same? In 1996 the median in Orange County was $213,000 and applying the same percentage as rents have realized brings the median sales price to…., WOW $506,940. Don’t miss the boat renter, unless of course you think rents are going to go down too.
Somesh said,
April 24, 2008 at 4:52 pm
The whole economy is going down Home Debtor.
Get off the boat and head for the hills!!
I wont be surprised to see renting become more expensive
than owning. Because renting will be considered safe from
owning a depreciating house!!
bob said,
April 25, 2008 at 1:17 pm
Mr. Doom,
Who do you hang out with, Mr Gloom? On what facts are you basing your theory of “the sky is falling?” How about if I buy a condo and have you rent it so you can pay off my mortgage, does that sound like a good plan to you? Orange County has already seen almost 25% drop, and based on rents, it is already back to the same lows as the last cycle. April 22 Register, buyer activity is up in the O.C. 23%, have fun with the bears in those hills that your hedding for.
Bon Voyage
Somesh said,
April 25, 2008 at 8:04 pm
Sure buy a dozen condos and rent them out!
Try getting a mortgage first!
Good Luck Polyanna !!
bob said,
April 27, 2008 at 8:19 pm
Who said “sell on greed and buy on fear”?
Somesh said,
April 28, 2008 at 1:27 pm
I say “Do not catch a falling knife”
bob said,
April 28, 2008 at 9:45 pm
You don’t tug on Superman’s cape
You don’t spit into the wind
You don’t pull the mask off the old Lone Ranger
And you don’t mess around with Somesh!…..,
Wow, Thank You Somesh, those are words to live by, thank you for that insight, I have now been enlightened by your word of wisdom. Thank You, Thank You, Thank You. I am going to go sell every thing I have, buy gold and stuff it all under my mattress, and then wait for the world economy to implode, that will show them, is there anything else? Am I on the right track now?
Somesh said,
April 29, 2008 at 7:46 am
I think u got it !!
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September 25, 2008 at 12:50 am
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November 12, 2008 at 5:23 pm
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