foreclosure to homelessness 2009; the forgotten victims of the subprime crisis

the forgotten victims of the subprime crisis Foreclosure to Homelessness 2009 A joint report from the National Coalition for the Homeless,the National Health Care for the Homeless Council, the National Alliance to End Homelessness, the National Association for the Education of Homeless Children and Youth, the National Law Center on Homelessness & Poverty, the National Low Income Housing Coalition and the National Policy and Advocacy Council on Homelessness. Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page 2 Introduction 2 Methodology and Partners 3 Agency Survey Findings: Discussion 4 Homelessness as an Outcome of Foreclosure• 5 Coping with Foreclosure• 6 Coping with Foreclosure: institutional Responses• 7 Tenant Rights and Housing • 8 Related Issues Health Care• 9 Legal Assistance• 10 Education• 11 Rural Foreclosure• 12 Veterans and Foreclosure • 13 Conclusions 14 Recommendations from the Field 15 Policy Recommendations from the Partners 16 Appendices 1. Foreclosures by State: RealtyTrac 18 2. Foreclosures by State: HUD 20 3. End Notes and Sources Cited 22 4. Survey Tools 24 5. Responding Agencies 34 6. Authors, Credits and Contributors 37 7. Partnering Organizations 39 Foreclosure to Homelessness 2009 Table of Contents Introduction The Perfect Storm A Perfect Storm is a critical or disastrous situation created by a powerful concurrence of factors 1 that, individually, would be far less powerful than the storm resulting from their combination. The term is also used to describe a hypothetical hurricane that hits a region’s most vulnerable area, resulting in the worst possible damage. A perfect economic storm hit our country in the 1930s, resulting in the widespread foreclosures, homelessness, bank closures and job loss that became known as the Great Depression. Since 2007, advocacy organizations working to end homelessness have watched with concern as a series of crises have gathered into another perfect economic storm resulting in an unprecedented growth in the number of individuals and families left without homes. RealtyTrac• reported 3,42,038 foreclosure lings — default notices, auction sale notices and bank repossessions — on U.S. properties in April 2009, a 32 percent jump from April 2008 and the highest monthly foreclosure rate since it began issuing its report in 2005 2 . According to a June 2009 report by the Cen-• ter on Budget and Policy Priorities (CBPP), job losses in May, while still high at 345,000, were less than half of January’s level. Even so, net job losses since the start of the reces- sion total six million 3 . The ocial unemployment rate reached 9.4 • percent in May 2009, and 27 percent of the 14.5 million persons who are unemployed have not been able to nd work despite looking for 27 weeks or more 3 . In a recent empirical study of mortgage • foreclosure (Robinson, et.al., 2008) 4 , nearly half of respondents (49%) indicated that their foreclosure was caused in part by a medical problem. A Fall 2008 survey of 1,716 school districts • nationwide was conducted by the National Association for the Education of Homeless Children and Youth and First Focus. Nearly all (95.4%) school districts reported increasing numbers of homeless students 5 . Photo Credit: Cheryl Jones, NEOCH, Cleveland, Ohio Page 3 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis In Collaboration This report discusses the plight faced by a growing number of renters and homeowners who have been caught in the foreclosure crisis and then become homeless after exhausting their resources. This can mean moving in with relatives or friends, ending up in emergency shelters or on the streets. They must not be forgotten. The following organizations have contributed to collecting and analyzing Foreclosure to Homelessness Survey data, and to creating and releasing this report. National Coalition for the Homeless • National Alliance to End Homelessness • National Association for the Education of Homeless • Children and Youth National Health Care for the Homeless Council• National Law Center on Homelessness & Poverty• National Low Income Housing Coalition• National Policy and Advocacy Council on Homelessness• Thendingspresentedinthisreportarebasedonresponsestotwosurveyswritten,disseminatedand analyzedbythesponsoringorganizationslistedbelow. Surveyinstrumentsanddissemination:Sponsoringorganizationsdevelopedonesurveygearedtothose whostaffdirectserviceagenciesandorganizationsthatworkwithoradvocateforthoseexperiencing homelessness.Theintent was toenhance ourunderstandingof theimpact of theforeclosure crisisin communities across the country.To get a sense of the ways this crisis is affecting people at a more personallevel,asecondsurveywasdevelopedforthosesurvivingforeclosure.Bothsurveyinstruments werepostedonwww.surveymonkey.comandareprovidedinAppendix4. On January 15, 2009, sponsoring organizations emailed their members, asking those who work with homelesspopulationsoronissuesrelatedtohomelessnesstorespondtotheAgencySurvey.Theemail alsoaskedagenciestodistributethepersonalsurveytoclientswhowereatriskoforwhowereactually experiencinghomelessnessfollowingforeclosure.Forclientswhowishedtoparticipatebutdidnothave internetaccess,agencieswereencouragedtoprintandmailresponsestotheindividualsurvey.Thesurvey wasclosedonFebruary21,2009. Respondents:TheAgencySurveyproducedatotalof186responses.Eightwereexcludedfromanalysis, primarilybecause theyrepresentedmultiple responsesfrom the sameorganization.Thevastmajority ofthe178agencyrespondentswereinthebusinessofprovidingdirectservicestopeopleexperiencing homelessness,withnearlytwo-thirdsrepresentinghomelesssheltersororganizationsthatofferhousing assistance,healthcareorlegalservices.Intermsofgeographicdistribution,roughlyone-quarterofthe respondingagencieswerelocatedineach of the fourcensus-denedregions:South(31%),Northeast (24%),West(24%),andMidwest(21%). Theindividualsurveyyieldedatotalof74responses,butuponcloseexamination,only47respondents appearedtobehomelessorfacinghomelessnessduetoforeclosure. Data analysis: QuantitativeresultsfromtheAgencySurveyarepresentedinthisreport,butstatistical analysisoftheIndividualSurveywasnotappropriategiventhelownumberofresponses.Thesequalitative responses,however,providealevelofinsightpreviouslyunavailable.Manyofthecommentsmadeto open-endedquestionsareinterspersedthroughoutthedocument,tohighlightandcomplementthedata andquantitativendingspresentedinthisreport.Answerstoopen-endedquestionsfrombothsurveys werealsoanalyzedforrecurringthemes,whicharereectedinmayoftherelatedissueshighlightedin thisreport. Methodology ForeclosuretoHomelessnessSurveys Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page 4 Agency Survey Findings Discussion As noted in the Methodology Section, Foreclosure to Homelessness: a Coalition/ Provider/Agency Survey produced186responses.Eightsurveyswereexcludedfromanalysis,primarilybecausetheyrepresentedmultiple responsesfromthesameorganization. Similarpercentagesofresponsescamefromeachofthefourcensus-denedgeographicregions:South(31%), Northeast(24%),West(24%),andMidwest(21%).Respondentsrepresentedgeographicserviceareasofvarying sizes:most(53%)servedoneormorecounties,22percentservedlargeormid-sizedcitiesorlargetowns;and10 percentservedsmalltownsorruralcommunities.Thebalanceservedareasthatrangedinsizefromindividual neighborhoods(2%)tooneormorestates(7%). AsdemonstratedinTable1,themajorityofthe178responsesanalyzedforthisreportrepresenteddirectservice providers;nearlytwo-thirdsprovidedemergencyshelter,transitionalhousing,housingassistance,healthcare and/orlegalservices. Table 1: Distribution of Primary Missions of Respondents Providing Direct Services Direct Services Number Percent Cumulative Percent Emergency shelter 34 22.8% 23% Permanent or transitional housing 24 16.1% 39% Health care services 15 10.1% 49% Rental/housing assistance 13 8.7% 58% Legal services 10 6.7% 65% Mental health services 7 4.7% 69% Meals/food pantry 7 4.7% 74% General community services 7 4.7% 79% Outreach 6 4.0% 83% HIV/AIDS services 5 3.4% 86% Domestic violence services 5 3.4% 89% Family services 4 2.7% 92% Youth services 3 2.0% 94% McKinney-Vento (education) 3 2.0% 96% Substance abuse services 2 1.3% 97% Veterans services 1 0.7% 98% Workforce/employment services 1 0.7% 99% Religious 1 0.7% 100% Ex-oenders services 1 0.7% 100% Total direct service responses 149 Missing 13 Note: Only 16 responding agencies did not provide direct services and of those, ve did not provide information about their mission. Of the eleven responding, six were advocacy organizations, two were governmental, and one each was engaged in research, regulation/oversight or education. Table 1 shows the distribution of direct services provided by respondents. Almost half offer emergency shelter, housing or rental assistance, but the range of missions reects the broad spectrum of services offered by homelessness systems nationwide. Page 5 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Homelessness as an Outcome of Foreclosure National respondent recruitment targeted organizations with direct knowledge of the local population of persons experiencing or at high risk of homelessness. A range of organizationsisrepresented,butas reectedinTable1,mostrespondents were providing direct services. Almost half of those responding offeremergencyshelter,housing or rental assistance, but the range of missionsreectsthebroadspectrum of services available to address homelessness. Respondentswereaskedtoidentify thepercentageoftheirclientswhohad becomehomelessduetoforeclosure withinthelasttwelvemonths.Ofthe 178responsesanalyzed,159offered anestimateofthepercentageoftheir clients who had become homeless due to foreclosure, whether after eviction from homes they had been renting or purchasing.  The median response to the percent becoming homeless as a result of foreclosurehomeswas10percent; the mean (average) response was higherat19percent.Renterswere moreheavilyrepresentedthanthe owner-occupiers of foreclosed units. Some readers may nd the distribution of the providers’ responsesusefulaswell.Thefull distributionofresponsesisshown in Table 2. While 34 agencies reportedthatnone of theirclients werehomelessduetoforeclosure, 14 estimated that most were experiencinghomelessnessdueto foreclosure. Per Table 2, a full 79 percent of respondentsstatedthatatleastsomeof theirclientswerehomelessasaresult offoreclosure,andabouthalfestimated thatmorethan10percentoftheirclients were homelessbecause of foreclosure onahometheyhadbeenoccupying. Therewerevariationsinresponsesby geographic region. Respondents from the four designated Census Regions ofthe countryreported varying levels of homelessness due to foreclosure: respondents in the Midwest and the Southreportedmorehomelessnessdue toforeclosure(15%)thanthoseinthe South(10%)andtheNortheast(5%). One of the primary goals of the survey was to assess whether the foreclosure crisis is resulting in an increase in homelessness. TABLE 2: “What percentage of your clients would you estimate became homeless as a result of foreclosure?” Universe = 159 Providers Responding % of Clients 0% 1 - 10% 11 - 20% 21 - 30% 31-40% 41 - 50% 51 - 60% 61 - 70% 71 - 80% 81 - 90% 91 - 100% # of Providers 34 47 30 18 9 7 3 1 3 4 3 % of Providers 21% 30% 19% 11% 6% 4% 2% 1% 2% 3% 2% Photo Credit: Sue Watlov Phillips Designated Census Regions www.census.gov Region 1: Northeast Connecticut; Maine; Massachusetts; New Hampshire; Rhode Island; Vermont; New Jersey; New York ; Pensylvania Region 2: Midwest Indiana; Illinois; Michigan; Ohio; Wisconsin; Iowa; Kansas; Minnesota; Missouri; Nebraska; North Dakota; South Dakota Region 3: South Delaware; District of Columbia; Florida; Georgia; Maryland; North Carolina; South Carolina; Virginia; West Virginia; Alabama; Kentucky; Mississippi; Tennessee; Arkansas; Louisiana; Oklahoma; Texas Region 4: West Arizona; Colorado; Idaho; New Mexico; Montana; Utah; Nevada; Wyoming; Alaska; California; Hawaii; Oregon; Washington Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page 6 How many sought legal assistance? Region All or most Some Few or none Northeast 17% 17% 66% Midwest 6% 50% 43% South 4% 26% 70% West 14% 39% 47% Regional Dierences Therewereinterestingregionaldifferencestothisresponseaswell. Forexample,peopleintheSouthseemedleastlikelytohavesought legal assistance prior to eviction than those in other areas of the country. With family or friends: 86% Emergency shelter: 61% Hotels/Motels: 26% In a home they do not rent or own: 11% Permanent or transitional housing: 25% On the streets: 21% Outside, but not on the streets: 18% In a home they rent or own: 17% Don’t know: 6% Other: 1% FIGURE 1: What are the 3 most common living situations you are aware of among clients who have become homeless due to foreclosure? Coping with Foreclosure The survey included a pair of questions that asked respondents to identify post- eviction living situations among clients, as well as the top three living situations for those who were without homes due to foreclosure. Analysis of the rst question revealedthatstayingwithfamilyorfriends and emergency shelters were the most commonpost-foreclosureliving situations, followedbyhotels/motels,thentransitional or permanent housing. Responses to the second question, which asked for the top three post-eviction living situations, are summarizedinFigure1. Of 114 appropriate responses to this question, by far, the two most common responses were living with family and friends (86%)andemergency shelter(61%). The graph below demonstrates how many respondentsputeachoptionamongtheirtop threeobservations. How many sought legal assistance? Number Percent All or Most 15 10% Some 46 32% A few/None 84 58% Total 145 100% Seeking Legal Assistance Thesurveyalsoaskedwhetherclientshadsoughtlegal assistance with theforeclosure. More than half (58%) ofrespondingagenciesreported that either “afew”or “none” of their clients had attempted to access legal assistance. Note: These percentages add up to more than 100% because respondents were asked to choose the 3 most common living situations. Estimatedlevelsofhomelessnessduetoforeclosurevariedbyprovidertype.Thefollowingtabledemonstratesthe medianpercentofpersonsestimatedtobewithouthomesduetoforeclosurebasedonthetypeofservicesprovided. Non-housingprovidersreportedhigherpercentagesthantheothercategories.Thismaybebecausethoseoffering non-housingservices(e.g.,healthcare,legalservices,foodbanks),areseeingclientswhohaverecentlylosttheir homesorwhoareathighrisk,buthavenotyetenteredtheemergencyshelterortransitionalhousingsystems. Provider Type Median percent of estimated foreclosures as a reason for homelessness Housing Providers (i.e., emergency, transitional or permanent ) 5% Non-housing Services Providers 20% All Respondents 10% Note: The median is the value at which exactly half of the responses are higher and half are lower. Notes from Providers: What kind of services are being provided in your area to address the needs of those aected by the foreclosure crisis? Prevention assistance with mortgage and utilities. Funds used are Emergency Food and Shelter Program • funds and Homeless Challenge Grant funds. (Lakeland, Florida) The court has a mediation program in place. Plaintiffs must include a notice about mediation when serving • the summons and complaint; the defendant has 15 days after the return day to request mediation. If a timely request is made, the case goes to mediation. The lender must have someone with the authority to agree to a settlement(e.g.,modication).Ibelieverecentstatisticsshowthatapproximatelyhalfoftheborrowershave been able to reach agreements to stay in their homes. (Middletown, Connecticut) InMinnesota,wepassedTenantProtectionLawsin2008.Weprovideforeclosurecounseling,preventivenancial• assistance through state, local and private funding (including the Minnesota Family Homeless Prevention and Assistance Program), and are funding Legal Aid attorneys to assist renters in foreclosed properties. We useexistingprogramsandnewmodelstohelphomeownersandrentersstayintheirhomesandtoreuse vacant and foreclosed properties to house people with limited incomes. (Minneapolis, Minnesota) Page 7 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Estimates by Sector and Provider Responses Note: 52 of the 178 respondents chose to skip this survey question. FIGURE 2: What kind of services are being provided in your area to address the needs of those aected by the foreclosure crisis? Counseling to prevent foreclosure: 72% Free or pro-bono legal assistance: 50% Cash assistance: 49% Relocation assistance: 18% Communities buying properties for use by persons with limited incomes: 15% Other: 10% Note: These percentages add up to more than 100% because respondents were asked to choose all applicable services. Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page 8 N otes from Respondents: A National Survey of People Surviving Foreclosure We were in the middle class This should not be happening. We were the middle class and now we are poverty stricken. We had two cars, money in the bank and a reasonable mortgage. My husband is an electrician and simply cannot nd a job anywhere. On September 12, 2008 my husband’s company sent everyone home. The company could no longer aord to pay their employees. We have had no money coming in since then and absolutely no prospects. Our savings is all gone our home is being auctioned o. So much for the American Dream. — New Hampshire Fundamental rights We all deserve the fundamental rights of a roof of our own, no matter how humble. But shelter living is not that. —Massachusetts Tenants and Foreclosure While recognizing that the Protecting Tenants at Foreclosure Act (Title VII of Public Law 111-22) 6 has beensigned intolaw by PresidentObama, itremains important tonote that these national tenant protections donot completely - or permanently-resolvetheunderlyinglackoftenantrights.Themortgagecrisishas resultedinadramaticriseinhomeowners’lossoftheirhomes.Thisemergency hasbeenwelldocumented,butlessattentionhasbeenpaidtotheplightofthe tenantsofrentalpropertiesadverselyaffectedbythesystemicnatureofthiscrisis. Manytenants,eventhosewhoarecurrentintheirrentpaymentsandincompliance withtheirleases,faceanincreasedriskofhousinglossinthewakeofforeclosure proceedings,thecollateralconsequencesofsuchproceedingsand/orsubsequent possessoryactionscommencedbynewowners. AsrevealedbydatacollectedthroughForeclosure to Homelessness: a Coalition/ Provider/Agency Survey,amongthosewhohavehadtoturntomainstreamsocial servicesandhousingresources,rentershavebeenmoreadverselyaffectedandare moreheavilyrepresentedthanowners.Thisistheresultofanumberoffactors discussed in a presentation, Renters in Crisis 7 , by Sheila Crowley and Danilo PelletiereoftheNationalLowIncomeHousingCoalitionandMariaFoscarinisof theNationalLawCenteronHomelessness&Poverty: RentalstendtoserveyoungerAmericansandthosewithlowerincomes;• Thelowest-incomehouseholdsfacethemostseverehousingcostburdens.• About70percentof“ExtremelyLowIncome”households(thoselivingon0• -30percentoftheAreaMedianIncome)werespendingmorethan50percent oftheirincomeongrossrentin2007.Thirty(30)percentofhouseholdincome forrentistypicallyconsideredaffordable. Thereisawideninggapbetweentheneedfor,andsupplyof,housingaffordable• toExtremelyLowIncome(ELI)renters:forevery100ELIrenterhouseholds, therearenomorethan63affordablehomesinanystateinthecountry. Thedemandformoreaffordablerentalhomeswillincreaseduetoacombination• offactors,nottheleastofwhicharefallingincomes,areducedjobmarket,the lossofrentalhomesduetoforeclosureandmorecompetitionfortheremaining rentalsasprevioushomeownersarepushedintotherentalmarket. In2008,oneinveforeclosurepropertieswererentals;manyhadmultiple• units. The National Low Income Housing Coalition estimates that 40 percent of• familiesfacingevictionduetoforeclosurearerentersand7millionhouseholds livingonverylowincomes(31-50percentofAreaMedianIncome)areat risk offoreclosure. The National Low Income Housing Coalition has done extensive research on the impact of the foreclosure crisis on rental households. For more information, go to the National Low Income Housing Coalition website: www.nlihc.org. Page 9 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis N otes from Respondents: A National Survey of People Surviving Foreclosure Needs adequate health care My most pressing need is for adequate health care, dental and eye included. When I rst started to work, making minimum wage in the 70s, I could aord a dentist when I needed one. Today, at 60, I’ve put up with tooth pain for a year My eyesight is failing because my prescription for glasses should have been changed three years ago. I stayed in a wheelchair for 18 months because I had to self-treat a broken foot/leg. I have not been successful nding a job. —Georgia Too disabled to work I am facing homelessness unless SSDI or something comes through. Next month I lose my workers comp [Worker’s Compensation], then my world will come falling down in pieces over my head and there is nothing I can do about it. I am in too much pain and too disabled to do any kind of work and will lose my communications and electricity if not everything. —Arizona Related Issues: Health Care TheForeclosure to Homelessness Agency Surveydidnotspecicallyaskabout healthcare,buttheissueshowedupoverandoveragainonthePersonalSurvey thatelicitedinformationfrompersonswhohadlost-orwereatriskoflosing -theirhomestoforeclosure.Therolesofhealthproblems/healthcarecostsas driversofhomelessnesswereverycleartothosereportingtheirexperiences. For those struggling to pay for housing and other basic needs, the onset of seriousillnessordisabilitycaneasilydepletenancialresourcesandculminate inhomelessness.ResearchersatHarvardUniversityandOhioUniversityhave foundthat62percentofAmericanswholeforpersonalbankruptcysaythat healthcareexpenses,illnessorrelatedjoblosscontributedtotheirnancial collapse.Afull78percentofthosewhoattributebankruptcytohealthissues hadhealthinsurancethatprovedinadequatefortheircircumstances.Inanother health-related study in 2007, 27 percent of bankrupted people cited unpaid medicalbillsspecically,andtwopercentsaidthattheyhadmortgagedtheir homestopaymedicalbills 8 . InThe Nexus of Health Reform, Housing & Homelessness: Recommendations for the Obama Administration 9 , the National Health Care for the Homeless Council reports that the number of adults over age 50 seen in homeless clinicsandsheltersisincreasingduetoeconomicissues.Theseolderadults who are entering shelter for the rst time are at greater risk of long-term homelessness. Health problems only increase once people have become homeless due to harshandunsanitarylivingconditions,poornutrition,stress,substanceuse,lack ofrest,violenceandotherfactors.Accesstohealthcareisseverelylimitedby nancialandlogisticalbarriers.Chillingly,itistruethatpersonsexperiencing homelessnesswilllive30yearslessthanwilltheirhousedpeers 10 . Comprehensive, barrier-free universal health insurance is as important for resolving homelessness at the individual level as it is for preventing new homelessness.Nooneshouldbeimpoverished to the pointofhomelessness simplybecausetheycannotaffordhealthcare. The central focus of the National Health Care for the Homeless Council is to end homelessness by bringing about comprehensive health care reform and ensuring the universal accessibility to essential health services. For more information, visit the National Health Care for the Homeless Council at: www.nhchc.org. N Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page 10 Legal Assistance Legal assistance can play a critical role in preventing homelessness due to foreclosure. Legal advocates can help homeowners negotiate with lenders, challengeillegalforeclosuresandhelpnavigatebankruptcyprocesses.Theycan also help renters at risk of losing their rentals due to foreclosure proceedings againsttheirlandlords.Forthosewhodobecomehomeless,legalassistancecan helpgainaccesstoimportantresources.Evenso,Foreclosure to Homelessness Survey resultsindicatethatmanyfacinghomelessnessasaresultofforeclosure donotseeklegalassistance.Evenamongthosewhodo,surveyresultssuggesta lackofsuccessinprocuringlegalassistance. Thelegalstatusofrentersinforeclosureisaparticularlyimportantissue.According to theNational Low Income HousingCoalition (NLIHC), some 40percent of thosewhofaceforeclosure-relatedevictionsarerenters 11 .Arecentreportbythe NationalLawCenteronHomelessness&Poverty(NLCHP)andNLIHC,Without Just Cause: A 50-State Review of the (Lack Of) Rights of Tenants in Foreclosure 11 , concludedthatrentersinforeclosuresituationshavefewrightsundermoststate laws.Ifalandlordfacesforeclosure,eventenantswhohavepaidtheirrentand compliedwiththeirleasetermscouldfaceevictionwithlittlenotice. As highlighted by Without Just Cause, laws governing the status of renters in foreclosurearecomplexandvarysignicantlyacrossthecountry.Just17states require any type of notice to tenants during foreclosure proceedings; 14 states and the District of Columbia require a judicial process before foreclosure. In ve states, tenants canmaintain their leases only ifthey arenot named in the foreclosureproceedings. Rentersrecentlyreceivedimportantnewfederalprotectionsthatmayhelp.On May 20, 2009, President Obama signed into law the Helping Families Save Their Home Act (P.L. 111-22) 12 .Amongotherprovisions,thenewlawstatesthat tenantsmustbegivenatleast90daysnoticetovacateoncethepropertyhasbeen foreclosedupon,andhavetheright“underanybonadeleaseenteredintobefore thenoticeofforeclosuretooccupythepremisesuntiltheendoftheremainingterm ofthelease”unlessthepropertywillbecomethepurchaser’sprimaryresidence. Additionally,thelawprovidesthatwhenaunitreceivingSection8assistanceis foreclosedupon,tenantsmaynotbeevictedduringthetermoftheirleaseinorder forthenewownertoselltheproperty.Whiletheseprovisionswillhelp,theywill notcompletelysolvetheproblem,especiallyifallowedtoexpire,asplanned,in 2012. Manystateshaveprogramsthatcanhelpprotecthomeownersandrentersfacing homelessnessasaresultofforeclosurebyprovidingemergencynancialresources orotherassistance.AnotherNLCHPreport,An Ounce of Prevention: Programs to Prevent Homelessness in 25 States 13 ,reviewedstate-levelpreventionefforts. The National Law Center on Homelessness & Poverty (NLCHP) oers additional information and materials on this issue. For more information, go to www.nlchp.org. LIHC Root Causes: Housing Aordability is the • critical housing problem for people with low incomes. Estimates indicate • that there are twice as many low- income families searching for homes as there are aordable units available. Only about a third • of low-income families eligible for housing assistance actually receive it. Millions of low-• income American households pay more that 50% of their incomes on rent, often for substandard homes with serious physical problems. Source: 14 National Low Income Housing Coalition as cited in Homelessness and Poverty in America. National Law Center on Homelessness and Poverty. www.nlchp.org./hapia_ causes.cfm [...]... the Forgotten Victims of the Subprime Crisis Appendix 4: Survey Tools Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page 26 Appendix 4: Survey Tools Page 27 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Appendix 4: Survey Tools Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page 28 Appendix 4: Survey of. .. Surviving Homelessness Appendix 4: Survey Tools Page 29 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Appendix 4: Survey Tools Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page 30 Appendix 4: Survey Tools Page 31 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Appendix 4: Survey Tools Foreclosure to Homelessness. .. not tolerate a situation where the many who are okay say it’s not their business to be concerned about those who are not.” - President John F Kennedy Page 23 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Appendix 4: Survey Tools Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page 24 Appendix 4: Survey Tools Page 25 Foreclosure to Homelessness. .. 2009: the Forgotten Victims of the Subprime Crisis Page 32 Appendix 4: Survey Tools Page 33 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Appendix 5: Coalition/Provider/Agencies Responding to Foreclosure to Homelessness Survey ALASKA COLORADO The Salvation Army Anchorage Emergency Family Assistance Association Housing Assistance Program Juneau CONNECTICUT Love INC of the. .. http://www.realtytrac.com/ContentManagement/RealtyTracLibrary.aspx?channelid=8&ItemID=6390#statetable Page 19 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis TABLE B-1: Estimates Data - Extent of Delinquencies, Foreclosures and REOs25 Estimated Estimated # % of All Estimated # of % of All Loans: Estimated # % of All Loans: Estimated # of Total # of of Subprime Loans: Loans Delinquent 30+ Days of Foreclosed In Foreclosure Loans in REO Loans Loans Subprime 30+ Days... federal) for the owners of properties that have undergone foreclosure to encourage them to donate, sell at deeply discounted prices or to rent units to nonprofit affordable housing entities Priority should be given to ensuring that current homeowners or tenants can retain housing stability within the unit Page 17 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Appendix... in the welfare of children and youth who are experiencing homelessness For more information, go to the NAEHCY website: www.naehcy.org Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Rural Foreclosure One company, RealtyTrac, provides the most widely followed statistics on local home foreclosures16 It gathers data from more than 2,200 counties nationwide, which together... survivors keep their homes, a savings to the government of nearly $1.5 billion Depending on the circumstances, the VA can intercede with the borrower to pursue options such as repayment plans, forbearance, and loan modifications that would allow a veteran to keep his/her home23 - Ohio Page 13 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Conclusions The number of Americans... 9 Pennsylvania 252,944 4.00% 10 Indiana 196,948 3.11% Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page 20 TABLE B-2: Estimates Data - Extent of Delinquencies, Foreclosures and REOs25 Estimated # % of All Estimated Total of Subprime Loans: # of Loans Loans Subprime State Estimated # of Loans Delinquent 30+ Days % of All Loans: 30+ Days Delinquent 181,512 9,960 5.49... money They refused to lower the interest rate or extend the terms They told me to call back when we had more income “We are not sure where to turn anymore.” The Protecting Tenants at Foreclosure Act (Title VII of Public Law 111-22) of 2009 ensures that renters aren’t forced out of their homes if foreclosure occurs and a new landlord takes over The law benefits the military, because the vast majority of . spectrum of services offered by homelessness systems nationwide. Page 5 Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Homelessness as an Outcome of Foreclosure National. Quantitativeresultsfrom the AgencySurveyarepresentedinthisreport,butstatistical analysis of the IndividualSurveywasnotappropriategiven the lownumber of responses.Thesequalitative responses,however,providealevel of insightpreviouslyunavailable.Many of the commentsmade to open-endedquestionsareinterspersedthroughout the document, to highlightandcomplement the data andquantitativendingspresentedinthisreport.Answers to open-endedquestionsfrombothsurveys werealsoanalyzedforrecurringthemes,whicharereectedinmay of the relatedissueshighlightedin thisreport. Methodology Foreclosure to Homelessness Surveys Foreclosure to Homelessness 2009: the Forgotten Victims of the Subprime Crisis Page. the forgotten victims of the subprime crisis Foreclosure to Homelessness 2009 A joint report from the National Coalition for the Homeless ,the National Health Care for the Homeless Council, the