Main Street Greed

Posted: October 9, 2008 in Economy, Headlines

Sheriff: I will stop enforcing evictions
By Azam Ahmed and Ofelia Casillas | Chicago Tribune reporters

As the nationwide mortgage crisis puts the squeeze on homeowners, the Cook County sheriff’s office is on pace to evict more people than ever from foreclosed homes.

At least it was until Wednesday, when Sheriff Tom Dart announced he wouldn’t do it anymore.

Dart cited the growing number of evictions that involve rent-paying tenants who suddenly learn their building is in foreclosure because the landlord neglected to pay the mortgage. By refusing to do any foreclosure-related evictions, the hope is that banks will change their policies. (more…)

I have to agree with the Sheriff on this one. Renters who pay their rent on a regular basis should not be thrown out of these homes. It is the responsibility of the homeowner to see to it that the mortgage is being paid.

Here are two reasons why landlords have not been making mortgage payments:

1 – Like most subprime loan recipients, they banked on the idea that with the low introductory interest rate, they could easily refinance once the rate matured. Initially, many of these first time landlords were making a killing on rent because their rate was so low. Once the rate went up and they were unable to refinance, many of them were stuck with a mortgage payment that was larger than what they received from rent.

2 – Poor planning that catered to their greed.

The sad thing about all of this is that we could see many of these homes become public housing.

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Comments
  1. DarkStar says:

    I don’t agree, if the owner is “put out,” the renter has no choice but to get out. I agree with the sentiment, but not the action.

    Your last comment is something I’ve thought about and am starting to hear more people wonder about, and that’s not a good thing.

    Imagine a Toll Brothers home becoming a multi-family apartment. Baltimore is full of the results and, in time, it’s not a pretty site.

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