Foreclosures Force Ex-Homeowners to Turn to Shelters

An October 19th New York Times front-page article brings attention to the plight of former homeowners who are becoming homeless as a result of foreclosure actions. Recent months have seen a rise in the number of former homeowners turning to shelters in a desperate effort to stay off the streets.

“These families never needed help before,” said Larry Haynes, executive director of Mercy House in Santa Ana, Calif. “They
haven’t a clue about where to go, and they have all sorts of
humiliation issues. They don’t even know what to say, what to ask for.”

Many start off camping out in cars, particularly in warmer places.

“We’ve
seen a rise in people sleeping in their cars,” said Rick Cole, city
manager in Ventura, Calif., which recently allowed car-camping in
designated areas. “Some are foreclosed former homeowners, and some
couldn’t afford their rent. People will give up their house before they
give up their car.”

Those with means try to rent homes or
apartments, though tainted credit often makes that impossible. Growing
numbers are landing in motels that rent by the week, cramming whole
families into single rooms and using hot plates as kitchens. But as
unemployment expands, many are losing the wherewithal to remain.

Many take refuge with families and friends, occupying extra bedrooms, basements and attics. But such hospitality rarely lasts.

So, as lean times endure and paychecks disappear, homeless shelters are absorbing those who have run out of alternatives.

Read the rest of the article at the New York Times website. 

Through our Foreclosure Prevention Projects, Legal Services NYC is at
the forefront of the national fight against predatory lending practices
in the subprime lending market. Predatory lending practices lead to
foreclosure, homelessness, financial devastation and loss of
hard-earned equity (which is the sole source of wealth for many lower
income homeowners), displacement of long-time residents and
destabilization of neighborhoods.

Legal Services NYC's work includes:

• Providing legal assistance, including advice, advocacy and litigation services, to homeowners;

• Providing advice and assistance to community-based organizations on specific cases;and

• Helping to coordinate and provide training for foreclosure prevention advocates throughout the City.

Foreclosure Assistance programs are offered at Legal Services NYC- Bronx, Brooklyn Legal Services Corporation A, South Brooklyn Legal Services, and Staten Island Legal Services.