Thursday, May 29, 2008

Foreclosures affecting rental tenants...

Sometimes I post information about the rental market since I have the best source of information on the subject in the office directly next to mine.

Linked here, you'll find an article that speaks to what is happening locally with some investment property/rentals and the tenants that are living in those homes. I said some, not all. In fact I doubt anyone is sure how deep the problem may be or may end up being.

Also notice that the lovely, gracious, and uber talented Helena (property management extraordinaire) is featured in the local article. (She also happens to be that best source of information about the rental market in Kingman... in my opinion).

From the article...

Helena Baughman is a property manager and Realtor with RE/MAX Preferred Professionals in Kingman.

She said that while it's not a common occurrence for renters to be evicted because their landlords can't pay the bills, it has been happening here, as well as across the nation.

"It is rare, but it only has to happen once or twice for it to be just overwhelming," Baughman said. "Unfortunate as it is, we do have investors, the majority of them out of state. Most own more than one property, and so it's a ripple-down effect."

Baughman said that while a number of factors contribute to landlord foreclosures, the primary culprits are the adjustable-rate mortgages many took out on their investment properties when they initially bought them.

"The big factor was, with a lot of these loans, they were reset," she said. "In essence, the landlord if you will, their payment may have gone from $800 a month to $1300 a month. Rents came down, owners' payments came up - some of them were exorbitant."

Be sure to read the whole article.

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