| In 2004, home ownership hit its peak, with 70% | | | | For some people facing foreclosure, the banks |
| of all American adults owning their own real | | | | and real estate agents are working to offer the |
| estate. However, the numbers began declining | | | | property at the monthly rate of market value |
| every year after that once the market became | | | | rentals for a certain number of years to help the |
| over-inflated, making it difficult for many people | | | | homeowner get current again. This prevents |
| to afford their own property. One of the | | | | housing prices from being slashed, property values |
| unfortunate consequences of this housing boom | | | | from depreciating, banks from being saddled with |
| was an expanding social class of "house poor" | | | | too much inventory and homeowners from losing |
| individuals, which are people who were paying | | | | their beloved estates. Many housing analysts say |
| more than 30% of their income on their | | | | that the best way to fix the housing crisis is to |
| mortgages and bills, constantly living from | | | | keep people in their homes and renegotiate the |
| paycheck to paycheck. Many of these people | | | | terms of their mortgage. Freddie Mac has agreed |
| eventually wound up in foreclosure after suffering | | | | to help at least 8,600 qualified families keep their |
| a job loss, insurmountable medical bills or other | | | | homes through their rental program in 2009. |
| economic uncertainties. Now they're faced with | | | | As you can imagine, foreclosures don't look very |
| the daunting task of finding a smaller place with a | | | | appealing to owners of rentals, whether it is a |
| better mortgage rate or sifting through housing | | | | house, an apartment or a condo. Any wise |
| rentals. | | | | investor would prefer to have tenants with |
| There are many problems homeowners face | | | | guaranteed jobs who are guaranteed to pay their |
| when looking for new homes after foreclosure. | | | | bills. However, there are a few ways to get |
| Maurice Ortiz of The Apartment People in Chicago | | | | around this. First, be honest about your situation |
| says the biggest obstacle to moving is the lack of | | | | because you're not fooling anyone, especially with |
| a rental deposit. Candidates who haven't paid | | | | the computer screening processes nowadays! |
| housing bills and suffer damaged credit often need | | | | Secondly, if you don't know anyone, then try |
| double the deposit to be considered, adds Mark | | | | looking for a smaller rental unit, perhaps one |
| Fogelman of the Fogelman Management Group | | | | owned by an individual or a sub-let opportunity. A |
| based out of Memphis. To help homeowners | | | | person will likely be more sympathetic to your |
| make the transition to rentals, people who have a | | | | cause and willing to work with you than a large |
| Federal Housing Administration insured loan may | | | | apartment complex owned by a corporation. Be |
| be able to get a check for $1,000 with the "Cash | | | | prepared to rent with another person who has |
| for Keys" program if they leave their foreclosed | | | | good credit standing or put up a sizable deposit. |
| home "broom clean." | | | | Sometimes this is the best way to prove you are |
| Renting is quickly changing the housing landscape. | | | | reliable. |