Friday, November 9, 2012

Tenants Active Against Landlords/Banks in Predatory Equity

The Urban Homesteading Assistance Board (UHAB) has a great video of tenants and elected officials fighting "predatory equity."   That's where a landlord obtains a mortgage for much more than the building's rent payments are worth (hoping its value will increase). To pay the mortgage, the landlord must either 

  • get rid of tenants paying affordable rents and bring in higher-paying tenants, or 
  • stop maintaining the building.
If the tenants fight back, the landlord sometimes walks away - forfeiting the mortgage, leaving the bank in charge and the tenants with nothing. 

Then the tenants REALLY have to fight.  So watch the UHAB video for a great example.