Renters Look to Congress for Forclosure Relief

Something that I hadn't thought about before, but when a property is foreclosed on, renters are frequently evicted. As a result, renter protection was included in the House mortgage reform act, and Chris Dodd has proposed the same in the Senate.

Generally the protections come in the form of requiring purchasers continue leases of for 6 months following foreclosure.

Considering that about more than 10% of all foreclosures are non-owner occupied, and as the Times notes, "This figure probably underestimates the problem, according to the association, because buildings receive tax benefits if they are registered as owner-occupied", we could see well in excess of 100,000 tenant evictions.