According to an article in the Star-Telegram, 40 percent of people facing eviction because of a foreclosure are renters. Those numbers have been further exacerbating by the shaky financial condition of millions of Americans, especially those who are low-income and working class. Many renters don't have enough income and/or savings to find suitable housing after an eviction due to foreclosure and many families are find themselves living in homeless shelters or relying on the kindness of family and friends. Renters have less power than homeowners when facing an eviction due to foreclosure and often are unable to remain in their home through the end of their lease.
The article said:
"People who had been paying their rent on time, had been keeping up with their lease requirements, all of a sudden are served with foreclosure notices," said NLIHC Deputy Director Linda Couch. "And in every state but New Jersey and the District of Columbia, renters are not allowed to stay through their lease term and are given no special protections."
As we have previously discussed on this blog paying your rent on time is not a protection against an eviction due to foreclosure. Renters must be prepared for a possible foreclosure with savings and a contingency plan. Saving can be especially difficult for those working low paying jobs and struggling to pay credit card debts, medical bills and other daily expenses. If you are a renter struggling to pay your daily expenses and/or debts and find that you are unable to save any money in case of a financial emergency such as an eviction due to foreclosure you may want to consider filing bankruptcy. Living paycheck to paycheck is a recipe for disaster, especially during this economic downturn where both foreclosures and job losses are sky high.