The plight of 'rebound renters'

For those considering joining the 'jingle mail' crowd and thinking that they'll simply move out and find a rental home elsewhere, a story in The Washington Post reminds readers of the pitfalls of renting:

Foreclosures have doubled over the last year, which means a lot of former homeowners are becoming renters again for the first time in a long time. And there are new lessons to learn: You're not quite the master of your own domain, because you lease the property instead of owning it. You have to live by the landlord's or building's rules and regulations. And you have to remember to change your insurance coverage.

And, on the Lansner on Real Estate blog, he cites at National Multi Housing Council study that concludes most foreclosure 'refugees' are not looking for apartments managed by large companies, but individual homes owned by individuals. And why is that? Some reasons:

Experts have several theories about why there hasn’t been a flood of foreclosure refugees into apartments:

• Foreclosures may involve investment properties
• Some are renting houses rather than apartments
• Those with credit problems are applying for units that don’t screen applicants
• They could be moving in with family...

“Given that foreclosures take time and that additional pressure will be put on financially burdened homeowners as adjustable-rate mortgages continue to reset in 2008 and 2009, it is reasonable to expect the number of applicants with foreclosures to continue to increase, perhaps dramatically, from current levels,” said the report.