As more and more foreclosures are seen on the market, more and more coverage is being spent on homeowners who lose their homes. However, analysis of the impact of foreclosures should not be limited to homeowners. Foreclosures have long-term effects both financially and culturally. As more and more people lose their homes, fewer people are able to leave their rental apartments to invest in a home of their own.

What happens to the rental market when it’s saturated with former homeowners who have lost their homes to foreclosure, as well as people who are too timid to go out and buy their new home? And worst case scenario of all, what happens to renters whose landlords miscalculate and lose their property and renters lose a place to call home.

The rise in foreclosures has not been beneficial to renters. Although it may initially appear that renters have a safe enclave from the dangers of foreclosure, many renters are caught in the middle of the dilemma. More and more individuals, couples, and families are having to compete for affordable, low-cost rental spaces as a result of rising foreclosures.

Also, when the property they are renting becomes foreclosed, the individual, couple, or family suddenly finds themselves homeless through no fault of their own. The emotional impact of this sudden loss of home can be tremendous. Nearly 20 percent of all homes in foreclosure are investor-owned rental properties. That means one in four foreclosures involves renters being forced to move out immediately. Many of these foreclosed rental properties are occurring in low-income and minority communities, influencing neighborhoods already dealing with economically vulnerable individuals and families.

The number of renters has increased dramatically in the last year. Renters increased by nearly 1 million, which is more than four times the growth rate between 2003 and 2006. The demand for affordable and low-cost housing has increased significantly, but the supply of these low-rent housing is declining.

Studies now show that nearly half of all rental families contribute 30 percent of their income to their home, while one in four families spend 50 percent or more of their income on rent and associated costs. . The economic impact of these families who spend the majority of their income on rent cannot be underestimated. If these families lived in low-cost and more affordable housing, overall economic stability and stimulus would improve.

However, the rental outlook is not entirely bleak. Due to the weakness in the home sales market, more and more houses, condos and units are being put on the market as rental properties rather than sales. While there is still debate as to whether these rental properties offer the low-cost housing options that are needed in the market, the availability of more and more rental properties means that the situation will ease to some extent. However, no matter what, the rise in foreclosures is showing an impact for both renters and homeowners.

If you are an investor and own a home that you will lose to foreclosure, you have options. There are ways to stop foreclosure quickly and save what little equity you have in your investment. To sell your home and receive a free offer on your investment property, contact your local homebuyer. They exist in all major metropolitan areas and can sell your home quickly.