Over-leveraged landlords are losing their rental properties in droves, and banks have no interest in being landlords. As a result, renters are often innocent victims of the foreclosure epidemic.
Cook County Sheriff Tom Dart has decided to take measures into his own hands. He announced a moratorium on evictions for homes, apartment buildings, and condominiums facing mortgage foreclosure.
Mortgage foreclosure cases filed in Cook County are likely to exceed 43,000 this year, compared to some 18,000 in 2006, the sheriff said.
Among the consequences may be fewer mortgage loans.
“We have to have the ability to take over collateral upon default, and if we don’t have that assurance, or we think evictions won’t be made … we simply won’t make the loan,” Koch said of the moratorium.
For Minnesota renters, HOME Line has some helpful resources on the side effects of foreclosure, including a brochure (PDF link) and more extensive written materials (PDF link)