The impact of foreclosures on renters

Most people are aware of the depth of the foreclosure crisis and its impact on homeowners, but what about renters? The plight of tenants is a less visible aspect of the foreclosure problem. I think this is due to the lack of clear information about the extent of the problem. A group in Chicago has developed a system for tracking the multi-family rental foreclosures and what they have learned is astounding. Their information is now available in a report titled  Chicago Apartment Building Foreclosures: Impact on Tenants.  

Here are some of their findings:

• Last year, an average of 125 apartment buildings went into foreclosure each week in Chicago.

• There were 4,000 more apartment building units affected by foreclosure than single‐family and condominium units.

• 12 community areas had more than 500 units impacted by foreclosure in 2009, with two communities having well over 1,000 units affected.

• As many as 25 community areas had more than 5% of their rental stock directly impacted by foreclosure filings.

The report also highlights the following issues:

• Even tenants in good standing often lose their housing during foreclosure due to unsafe living conditions, utility shutoffs, and threats of illegal lockout. 

•  High rates of foreclosure in historically Black neighborhoods present a very real threat to community stability

• The ongoing foreclosure crisis will exacerbate the expected shortage of affordable rental housing in Chicago.

About the Lawyers' Committee for Better Housing:

LCBH's mission is to promote safe, fair, affordable housing, free from discrimination for low-income Chicagoans through legal representation, education, supportive services, and advocacy. LCBH’s Tenants in Foreclosure Intervention Project focuses exclusively on the issues facing tenants living in buildings in foreclosure. TFIP works hand in hand with neighborhood organizations and tenant organizers to assist tenants impacted by foreclosure. The project provides education, advocacy, and direct legal intervention and representation for tenants and works to maintain the viability of rental housing.