Predatory Renting Crisis In The Midst Of The American Foreclosure Crisis

Similar to the housing predatory lending which fuels the foreclosure problem in America, is predatory renting. Predatory renting can be composed of several components, including:

1. A landlord failing to tell the renter the property is in foreclosure or in default.
2. A landlord knowing the property is in foreclosure and has no intention of fulfilling the contractual agreement with the renter before the lease expires.
3. Takes rent from the renter but doesn’t use it to pay their mortgage (rent skimming).
4. Doesn’t give renters notice of a change of ownership which may require the renter to move. This can result in families being forced to move immediately due to a foreclosure they were completely unaware of occurring.

All of these predatory renting practices are causing many Americans to be out of homes, without notice. Shelters and other emergency buildings are overflowing with families in need of shelter, due to these harsh and predatory practices occurring all over the United States. The most common areas for predatory lending are the low-income areas of large cities like Los Angeles. In fact, in 2008 the city lost 4,789 apartments due to foreclosure on apartment properties.  

This problem is raising a great deal of questions to the government. Should the landlords be jailed for rent skimming? What can be done to protect renters? Should landlords be liable to help families find shelter? Instead of focusing on renter predators, the government is looking toward assisting building owners with foreclosure avoidance options. Thus, it’s hoped these new options in foreclosure avoidance will permeate into the predatory renting crisis and help everyone involved.

The foreclosure crisis in America is something no one can escape, at least in hearing news about it that is. Neighbors are sitting back with held breaths while their friends are losing their homes in auctions and other foreclosure avoidance methods. Thus, the recently passed “Helping Families Save Their Homes in Bankruptcy Act of 2009” is a testament of this ongoing foreclosure issue. This newly House approved bill gives judges the authority to modify loans and lower monthly mortgage payments regarding both principal and interest rates for the entire term of the loan. Designed to help halt foreclosures, this bill is now being sent to the Senate for approval. Any homeowners who are interested in learning more about this topic can visit www.loanmodificationhelpcenter.org for more information. The www.loanmodificationhelpcenter.org site offers free information on load modification or the process of avoiding bankruptcy due to mortgage default.

For those homeowners struggling to pay their mortgage, the news on this new bill may be inspiring. However, those who are still in need of immediate help can gain assistance from The Feldman Law Center by visiting www.FeldmanLawCenter.com. This site connects homeowners with professionals who can help negotiate with lenders and avoid home foreclosure. It’s ideal for those under financial hardship and cannot pay their mortgage, those who have been a victim of predatory lending on their mortgage, Americans who already have a foreclosure date or homeowners who want to avoid their credit being ruined for the next ten years due to foreclosure.