What would you do if someone foreclosed on your home? If suddenly you and all your possessions were out on the street with a bank account depleted from trying to make mammoth mortgage payments, where would you go?
An estimated 6 million families could be facing this question in the next three years, with nearly 1 in 10 mortgage holders either delinquent or in foreclosure. And although we've heard a lot about trying to help people stay in their homes -- like President Obama's $275 billion foreclosure-prevention package -- it's been far more difficult to follow what happens to these families once they've been forced out.
"We haven't done a good job of tracking those people who were not able to stay in their homes," admits Douglas Robinson of NeighborWorks, an umbrella organization for more than 230 local nonprofits focused on community development. "Over the past four years, we've been heavily focused on foreclosure prevention -- keeping people in their homes. We're just starting to look at the other side of things now."
According to Robinson, those victims of foreclosure who do wind up being pushed out of their homes can be roughly divided into two waves.
The first wave consists of those who lost their homes because they were unable to keep up with payments on poor mortgages, often with cripplingly high interest rates. There's no hard research as yet, but anecdotal evidence indicates that, although these people didn't have the financial resources to keep up with their mortgage payments, most were able to rent apartments or even homes in their same communities.
But for the second wave, the transition hasn't been nearly so seamless. These are the people who are unable to make mortgage payments because they've lost their jobs. They no longer have the incomes to afford rentals.
This second wave is creating a strong demand for social services, including homeless shelters -- a demand that far exceeds supply. Again, as yet there is no hard data, but anecdotal evidence indicates a far higher percentage of these people are winding up in hotel rooms, with friends and relatives, in shelters, or even sleeping in cars or on the street.
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There is no "right" to a home if you cannot afford to pay for one. They can move in with their relatives.
ReplyDeleteWell that is a little insensitive. There are plenty of people out there who bought way over their heads either in an attempt to live up to some standard they felt the need to portray or out of sheer stupidity, but there are many who have done everything they were "suppose" to do and wound up with the shit end of the stick as they watched their jobs close up and move away.
ReplyDeleteWhat does always alaze me is how so few seem to have back up plans to financial disaster. It's as if everyone thought that their would never be a rainy day to plan for.
Saying there is no right to a home is a fact, regardless of how anyone feels about it. If you can't build, buy, or rent one, you move in with someone else. That's it. If more people realized this, we would not be in this situation.
ReplyDeleteYeah and I second you on disaster preparedness. It's as if we're a nation of people who want to live in perpetual adolescence!
It's as if we're a nation of people who want to live in perpetual adolescence!
ReplyDeleteNot, as if, but...
It is! We are a nation of people who live in perpetual adolescence.
AND, that is how we got into this mess.
If the majority acted like adults about money and goobermint, this would never have happened.
SIGH!
Bad situation indeed! So with all that is going on, people living on the streets and many more to follow, how is it possible that our government's efforts are all over the map,and basically accomplishing nothing while spending trillions. What a shame!
ReplyDeletePut aside the cause the dislocation of millions of previous homeowners. We will never probably know the circumstances leading to everyones eviction. However, consider this. If we end up with 10% of the population living on the streets without shelter, food, health care, and the perception of no hope. A tipping point will be reached and cities will begin to burn. There will be civil unrest and violence the likes of which has not been seen in this country. It has occurred in many other nations. Once central and local governmental power breaks down it will be a blood bath. The forces holding back violence will be breeched and YOU will become a participant in one way or another. I GUARANTEE IT.
ReplyDeleteTypical American responses: blame the individual and the workers, and let the corporate welfare bums and massive fraud of bankers and regulatory agencies off the hook!
ReplyDeletethe elite is right on track....
ReplyDeleteTo those who say move in with someone else, do you have friends, relatives, or strangers living with you. It's easier said than done.
ReplyDeleteMost Americans are selfish. We say move in with someone, just not with us....
I'm the one who said it, and yes, I do not currently but have had several times including recently, out of work laid off relatives live with myself, my wife, and my 2 boys. I have been in that situation myself as well before. Everyone knows it isn't fun but people need to pull together in tough times and sacrifice a little bit of individuality -- it's a luxury. There are no guarantees in life and a house isn't guaranteed either.
ReplyDeleteThe only reason a "blood bath" is guaranteed is that we in America have a problem with community and helping out the neighbor in distress. I suppose it is distilled at a very young age that if you do not conform to the capitalistic standard you do not deserve the right to things like food or shelter despite being, in the very least, an ANIMAL OF THE EARTH. Far better to take by force or by greed (an indication of power and worth!).
ReplyDeleteI know that people irresponsibly got in over their heads and many thought they could buy into the Modern Dream Version 3.0 on loans and endless credit and spending (isn't that what they convinced everyone of?).
Let's just hope in the near future those who board up with family and shotgun in hand (that rugged American individuality) in order to pick off hungry neighbors looking for a place to stay are a rare exception.
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ReplyDeletea little research on that. And he
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