loben

3 Ways to Play Subprime Safely

I disagree with your statement:
"The “shadow” rental market of foreclosed homes will also put some pressure on apartments, but rental homes do not compete directly with apartments. Most renters are not interested in mowing lawns and shoveling snow....
I say:
When people have lived in a home, and had it foreclosed on them, they don't want to cram their family into an apartment. It would be really embarrassing AND they want a garage for their nice cars, and a place for their washer/dryer. They DON'T want to get used to a laundromat! If they have a decent, stable job, but poor credit due to the foreclosure, the best thing for them is to find an affordable rental home in the same school district so that their kids can keep their friends and classes. That would provide the least disruption to the family, AND would provide the landlord with much needed income (if the landlord could not sell the house originally.) After a few years, they can try buying a house again, or even purchase the house from the landlord if it works for everyone.
Most would prefer to shovel snow and mow the grass to provide a home rather than an apartment especially if we have older children.