"Can Renters Jump Over This Housing Foreclosure Crisis Hurdle"

The Housing Foreclosure Crisis has affected many Real Estate Buyers and Property Sellers people across the country. With the foreclosure rate rising, many home owners with adjustable-rate mortgages face losing their homes. While the crisis is obviously affecting homeowners, renters are being affected as well. How could the Housing Foreclosure Crisis affect renters? Many landlords have been affected by the crisis. Many of the properties that they've acquired the last few years, have been acquired through non-traditional mortgages. This means that they have seen a high default rate as well. The renters of these properties are left in a house that is in default. Many times, renters don't even know its coming. They'll be sitting in the living room thinking how smart they are for renting right now, and then they get served eviction papers. Their landlord is in default and they have to find a new place to stay. Their deposit is probably as good as gone and they have to get out immediately. Even though it had nothing to do with them, they are still negatively affected. Another way that renters are being affected by the Housing Foreclosure Crisis is the rise in rents. Pretty much every metropolitan area in the country has seen an increase in average rents over the last few months. Why would the rent go up? It goes with the same law as everything else: supply and demand. When there is an increase in the amount of renters, the price for the limited rental property goes up. With the vast amount of people being kicked out of their homes, they are forced to rent. Even those that have never been in default are finding it harder to get a mortgage. Those that used to count on a "no money down" loan aren't getting so lucky. They apply for a home loan but are rejected because of their lack of perfect credit or an insufficient down payment. This is due to the tightening of the proverbial purse strings by the banks. The banks learned from their lenient ways and many of them have gone out of business. Many renters are choosing not to buy a home right now because of the investment aspect of it. They feel that the prices of homes are yet to hit the bottom. They're kind of waiting out the storm until they jump into the home ownership arena. They don't feel like it is a very good time to buy a house right now. The value of the house will in all likelihood continue to go down. Therefore, they decide to hold off. When renters do this, it increases the amount of renters even more. This, in turn, raises rents again. For now, the outlook for renters isn't exactly rosy. However, hope is in sight. The market will rebound as it always has. Whenever there is a valley in the market, the mountain is close behind. Renters will need to buckle down and get the job done for now, however times will change. The market will improve eventually and we'll all be stronger for it. The Housing Foreclosure Crisis will be all but a distant memory for Home Buyers and Home Sellers. Virginia Real Estate Gurus

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