Millions bouncing back after foreclosure because of rentals
Millions of foreclosure victims are bouncing back thank to suitable rentals. Tami Wingfield found that the mortgage was beyond her means when her marriage broke up. She could not shoulder alone the monthly housing bill of $1,600. The inevitable happened – in 2008 her house was swallowed up by foreclosure.
Like thousands of others she decided that the next step would be to rent. This did not however prevent her from giving up a house owner’s lifestyle. With three children she managed to live in a single-family unit having four bedrooms as tenants.
She belongs to a new group of renters that has made its debut following the housing crisis – those who lost the homes they owned and have now become tenants in single-family units. These homes are ironically reflecting the troubled times of the tenants. These houses were once owned by people who surrendered these to the crisis. Now these are owned and leased out by investors who had bought them cheaply at discounted prices.
A minimum of 1.75 million tenants are in the same boat as Wingfield as per the findings of CoreLogic. Wingfield pays $1,000 per month for a house located in Goodyear in Arizona. The house is owned by The Empire Group – a firm that had purchased it when it was in foreclosure. She has a garden in the rear portion of the house. The house is located in a desirable suburban neighbourhood only eight miles distant from the house that she and her estranged husband had once owned. From the outside it seems nothing has changed.
Wingfield said she has a nice house and can provide for herself and her daughters. She does not even have to hunt for a parking space but pulls in her car into her garage and walks into the home. She continues to feel part of the community although she is no longer a house owner but a renter. She is enjoying all the previous advantages – good school, available buses, parks and sidewalks for her pet dog.
In Phoenix region, Empire is the owner of nearly 1,000 units after spending $7,000 to make habitable for each of these. On an average it is getting per month $1,050 for 2,100 square feet said Geoffrey Jacobs of the firm. He informed that Empire had kicked off as a development firm but is now an investor. He quipped, “It was an opportunity for us to take advantage of – something we never thought we’d see again”.
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