Renters Who Paid Still Can Be Displaced by Foreclosure.
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Rental Properties Seized, Tenants Out on the Street After Paying Rent to Landlords in Foreclosure


Big business rarely has a heart. When it comes down to the bottom line, profits matter more than families and their homes.

Why would I say that? Well, let's take a look at the housing market crisis.

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It is not only homeowners who are in financial jeopardy; it's also business people, namely landlords, who have made bad investments who are filing bankruptcy and facing foreclosure of their properties.

I'm not calling all landlords heartless.

In this instance it is not the landlords who are being particularly nasty to the tenants. It's the banks who foreclose on and seize the rental properties, and then promptly cut off the utilities and evict the tenants.

It doesn't matter that they have been paying their rent and not causing any problems. The problem is simply that they live there; and to the bank, an empty property is easier to sell than an occupied one so the renters have got to go, and in a hurry. Families are being split up and left homeless, all in the name of profits and preserved investments for financial giants.

Sandi Bosnall has been paying rent on her condo in Massachusetts for 10 years.

She and her family have been good tenants. Her two teen children, her adult daughter and grandchild live with her. She never expected to be evicted from her home, but that is what has happened.

Her landlord was unable to pay his mortgage on the condo for whatever reason and the bank has foreclosed on the property. Now Sandi and her family are being forced out of the condo and she says they will have to split up in order for each of them to find a place to live.

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Her two teenagers will go to separate homes while she bunks with friends and her adult daughter and grandchild are still trying to figure out where they will go to live.

Bosnall and her family are not alone. The effects of the housing market tumble and foreclosure crisis that has followed are reaching further and further all the time. Families who rent their homes really never expect the foreclosure epidemic to affect them, yet here it is.

Renters are rarely given any notice or warning that the property they live in is facing foreclosure. They find out when the eviction notices are served on them.

Bad investments, predatory lending and high interest rates are all to blame for the ever increasing rate of bankruptcies and foreclosures across the country. When landlords default on their mortgages and the properties are seized by banks, they aren't the only ones who lose out.

Banks do not consider themselves, nor do they want to be landlords. In the vast majority of cases, they will not simply step in and take over the role. They move quickly to protect their financial investments by getting the tenants out of the rental units as fast as possible so that the property can be sold, and they can recover their money.

It's just business, nothing personal-but try telling that to the families who are losing their homes through no fault of their own.

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