Foreclosure Crisis Catching Renters Off Guard

Washington Post (08/08/08) P. A1; ElBoghdady, Dina
In Washington, D.C., and elsewhere, thousands of unsuspecting residents who have been paying their rent on time suddenly find themselves having to scramble for new digs after learning their landlords have failed to keep current on mortgage payments. Some Capitol Hill legislators and several localities are now pushing to give those who rent more time before the new owners--usually banks--can evict them. The Mortgage Bankers Association reports that one in five foreclosures initiated in 2007's third quarter last year were not occupied by the properties' owners, meaning that a large share of them were likely rentals. Some local jurisdictions are coming up with their own ways of dealing with the growing trend; for example, beginning on Aug. 11, Baltimore city residents in foreclosed-on homes must be given at least 14 days notice by certified or first-class mail prior to eviction.