Foreclosure Crisis Seen Displacing Renters

The foreclosure crisis is not only impacting homeowners, but also displacing renters who are involved in an estimated one-fifth to two-fifths of all foreclosures, according to Eric Belsky, executive director of housing studies at Harvard University. He told a NeighborWorks training symposium that that 35% of renters live in single-family homes and automatic evictions due to foreclosures have become a "major rental housing issue." The federal government has provided $4 billion for cities and municipalities to purchase foreclosed properties and fix them up for homebuyers or renters. But the city of Boston is receiving only $15 million," Mr. Belsky said. "It's just pathetic." Housing groups are urging President-elect Barack Obama's transition team to increase funding for this program and to drop a requirement that foreclosed properties must be purchased at a discount, which has the effect of driving down property values. House Financial Services Committee chairman Barney Frank, D-Mass., wants to get a provision in Obama's economic recovery bill that would protect renters from being evicted after a foreclosure.