Former Homeowners now Entering the Rental Market
May 14, 2012 – 5:03 pmIncreasing numbers of former homeowners are now becoming tenants. Many renters of single-family residences are entering the rental market due to a recent foreclosure on their own property. In fact, single-family residences now account for a larger portion of the market segment than ever before according to a recent study performed by Corelogic. In many cases, families who purchased homes at the peak of the housing market have found themselves trapped in high-interest loans they were unable to keep pace with. This has led to a high number of foreclosures among single-family residences. While these families have been unable to pay their mortgage, due to declining home values they can nonetheless afford to rent similar property. Investors who purchase foreclosed properties on short sale are often hesitant to place them on the market. Instead, many new owners opt to use these properties as rentals while they wait for the housing market to ...

