Possession, they say, is nine-tenths of the law. Unfortunately, when the remaining tenth is a mortgage, both homeowners and renters can find themselves evicted as part of the foreclosure process.
Results of an email survey of community and state homeless coalitions conducted by the National Coalition for the Homeless indicate that nearly 61 percent of respondents were already seeing an increase in homelessness before April 2008 when the report was published. More than 37 percent of those responding stated people were able to rent which researchers believe was an indication that they were former homeowners who had lost their homes through foreclosure. The number of foreclosures has continued to increase since the survey was taken so the number of people who are homeless as a result of foreclosure is also probably grown.
Although the housing market has also slowed, not all of the homes vacated because of foreclosure are remaining empty. Across the country foreclosed and abandoned properties are being occupied by squatters. Most squatting is random and unorganized. People seek temporary shelter then move on. Recently, however, some organized attempts to move homeless people into vacant properties for extended residency are being made.
In California, SignOnSanDiego.com reports that individuals claiming to be part of a religious order called the Sovereign Solomon Brothers Archbishop Corporation Sole are filing false grant deeds on foreclosed properties. They aren’t stopping there, either. They a moving tenants into the properties. some of the tenants may have been made homeless by foreclosure themselves. It is unclear whether the tenants knew their occupation of the property is based on questionable legal grounds. Since the recorder’s office is not responsible for verifying the authenticity of the documents being filed, it is often not until a property is resold and a new owner tries to move in that the situation is recognized. By then, determining who the rightful owner of the property is and who has the right to occupy it can take weeks or longer. At least one person has been arrested and charges with filing false documents in connection with this scheme.
A group of homeless activists calling themselves Take Back the Land has helped six families move into foreclosed properties in Miami, FL, according to the Associated Press (AP). This group also helps the families with used furniture, cleaning supplies and even landscape maintenence. No charges have been filed against either the group or the squatters. The City says it is the responsibility of the prpoerty owner, in this case the mortgage lender, to remove squatters or to file complaints that would allow law enforcement to take action.
It is not only recently vacated property that is being occupied or the homeless who are moving in. An “old house that was not properly locked up” became the hiding place for a fugitive in Vermont, WCAX.com reports. This situation demonstrates the dangers of squatting, both for the squatters and the community. In addition, vacant properties can pose health and fire hazards, as well as attracting criminal elements.
There are no quick fixes for the mortgage crisis, vacant properties or homelessness. The National coalition for the Homeless recommends requiring lenders nationwide to file foreclosure deeds within 30 days of the foreclosure sale in order to help identify the reighful owners and tenants of foreclosed properties. They also advocate protecting any existing agreements with tenants or renters and allowing their leases to survive the foreclosure process rather than automatically evicting them when the ownership fo the property is transferred to the mortage company or bank. Of course, the best solution is to help homeowner avoid foreclosure and prevent homelessness, not just during the current crisis but over the long term.
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