The landlord had told them he wanted to raise the rent to $3,500 and when they complained he decided to raise it to $9,500.

“We know that our building is not rent controlled and this was something we were always worried about happening and there is no way we can afford $9,500 per month," Yumna Farooq said.

    • Bleeping Lobster@lemmy.world
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      1 year ago

      This is what I don’t get. Where’s the risk for the lender? If I can’t pay, they get the house and can sell it. I guess there’s a potential cashflow issue but the underlying asset isn’t going anywhere.

      • w2qw@aussie.zone
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        1 year ago

        Typically it’s pretty low risk in comparison to other loans which is why home loans are relatively low but there’s a risk that both the property value declines and the outstanding loan and selling costs is more than property value.