Released: August 26, 2008

Foreclosures ensnare low-income renters

Source: William Heisel, LA Times (Free Registration)

Ruth Cordoba has never owned a home, but she is feeling the effects of the mortgage meltdown acutely.

Cordoba, 28, rented a three-bedroom home in Riverside for six months with the help of so-called Section 8 funds, money provided by the federal government through local housing agencies. In June, when her landlord could no longer make the mortgage payments on the house Cordoba was renting, she and her three children had to move to a hotel.

“I never missed a rent payment,” Cordoba said. “Then I hear someone outside one morning, and I go outside and see a sign on my door that says they’re auctioning the house.” Now the mortgage crisis is radiating downward and cracking the already fragile finances of people like Cordoba. 

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