Why the Boom in the Foreclosure Market is Causing Lots of Renters

Houses for rent in Orlando Florida and houses for rent in Phoenix Arizona and other areas hardest hit by the housing bust are in big demand thanks to the boom in the foreclosure market. It’s an unfortunate situation for many former owners of now-foreclosed homes. But it presents an opportunity for landlords, realtors and property managers to do brisk business.

How?

By offering as many houses for rent in Orlando Florida and houses for rent in Phoenix Arizona as possible. These and other areas where foreclosures are a problem have seen an unprecedented rise in demand from individuals who, because of a job loss, a reduction in work hours, a medical emergency or a reset in their mortgage interest rates could no longer afford to make their mortgage payments.

After months of non-payment, their properties were forced into foreclosure and their credit severely damaged. With lenders tightening their qualifying requirements, individuals who had gone through foreclosure – as well as plenty of others who didn’t – were suddenly viewed by lenders as unacceptable risks. Unable to qualify for a mortgage and without any relatives willing or able to take them in, many former homeowners have found they have no other option but to rent.

Across the nation, foreclosure filings were processed on 2.9 million properties in 2010. Those millions of foreclosure filings resulted in millions of displaced people forced to find someplace else to live. Arizona and Florida, along with Nevada and California experienced some of the highest foreclosure rates last year. Year’s end did see a decline in the number of foreclosures. However, that decline was mainly attributed to the problem of improperly processed foreclosure paperwork. Experts predict foreclosure activity during 2011 will increase as the backlog created by the paperwork fiasco clears.

More foreclosures mean even more displaced individuals. And the continued lack of credit availability means many of these former homeowners will become renters. They’ll be looking for houses to rent in Orlando Florida, for houses for rent in Phoenix Arizona, and elsewhere and they’ll be looking to Realtors, landlords and property managers like you to help find them.