Back in 2007 we started reporting about “accidental landlords”. These pretty much fell into two groups: Would be flippers who couldn’t sell, and homeowners who didn’t like the market and thought they’d wait and sell when the market improved.
It’s been more than three years, and prices have fallen in most areas. I suspect there are a lot of those folks who started renting out properties in 2007 that are now wishing they bit the bullet and sold. The ranks of “accidental landlords” continue to grow though, and now there’s another reason to look for a renter- staving off foreclosure. According to Jan Page, a broker from Hendersonville, TN:
“We have more rentals than we’ve ever had — people who can’t sell their homes. They don’t want to be a landlord, but they are,” said Page. “Rentals are so much more common. It’s a way to keep your house and pay your mortgage, especially for people who’ve lost their jobs.”
Homeowners unexpectedly become landlords in a variety of ways, she said. Some, like Khoury and her husband, find themselves with an unsold property in a place they are moving away from. One of Page’s clients built a new house, then couldn’t sell the old one. Other homeowners see turning their house into a rental as a way to pay their mortgage and avoid foreclosure. They find a cheaper place to live and plan to move back when times get better.
Those that are now reluctantly becoming landlords need to remember when making their plans what landlords should have considered in 2007- better might not come any time soon.
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wrote about this in 07, remember when people were bragging about the deals they were getting on houses back in 07 and 08, not a deal if you can’t rent it…………..
and taxes and insurance are getting ready to triple so no matter what your new low house payment is, taxes and insurance will bring you right back up to where you are now BUT THE GOVERNMENT and insurance companies will be getting the extra……..
1st inning, this game is just starting, values will be down 60% when it is over………
and like THE FIRST DEPRESSION, housing won’t come back for 10-15 years minimum……
after the election the media will tell you the truth about finances and it is going to scare people to death…………….2 years of lies to save ‘their side’ has caused more damage than we can imagine…………people blew their savings no realizing they were in the depression, that money should have been saved for necessities……….food and shelter only………….they were told IT WAS IN RECOVERY………….sad sad sad