The large number of foreclosures due to the housing bubble in the United States has created an abundance of homes available for rental purposes. Approximately 20% of all single family homes are now rentals. The large number of single family homes being rented is related to the boom and bust of the recent real estate cycle. The significant number of homes sold in foreclosure proceedings have created an availability of homes for rental by families. In addition, millions of homeowners have lost their homes in foreclosure lawsuits. These families need a place to live. The availability of other homes that have been foreclosed on can be rented by them to meet their need for a place to live.
In addition to homes being foreclosed, homeowners who need cash flow are putting their homes on the market as rentals. They are even doing this during the foreclosure process. Since the foreclosure process in many states takes years, homeowners can literally move out of their home, charge rent to a tenant, and put the rental money in their pockets and not make their mortgage payments.
Rentals are Better than Vacant Homes
Officials in local areas have a preference for foreclosed homes to be rented instead of being left vacant. Vacant homes can be a blight on a neighborhood. They can invite trespassers and can be utilized by children for inappropriate purposes.
Although renting a home does provide a family with a place to live, it may not be their first choice. Their more likely first choice would be to stay in the home they had owned and not to have lost it in foreclosure.
Elliot S. Schlissel is a foreclosure defense lawyer representing homeowners, fighting financial institutions and banks to stay in their homes. Elliot and his associates have been protecting homeowners and keeping them in their homes for more than 45 years.
