The Newnan, Georgia Times-Herald Online provides insight into where families go to live post-foreclosure. “What happens to people who lose their homes?” notes that former homeowners aren’t necessarily becoming renters right away. That means we may not fully understand the impact on real estate and home ownership recovery. Experts indicate that, prior to re-entering the world of home ownership, a typical foreclosure victim would first spend a requisite period as a renter rebuilding credit and saving for a downpayment.
But statistics show that those families and individuals aren’t necessarily becoming renters right away.
Many instead are consolidating households and moving in with family members. The U.S. lost 1.2 million households from 2005 to 2008 even as the country’s population increased by 3.4 million, according to a study from the Mortgage Bankers Association.
An informal poll of local apartment complexes taken by The Times-Herald this week bears out these figures. Most apartment complex managers did not want to be quoted on the record, but they said that they haven’t seen much evidence of a massive migration to rental properties due to foreclosures.
You can read the full Times-Herald article here.