Study: 10 Percent of 2008 Homeless Population Tied to Foreclosure

August 3, 2009 No Comments »

foreclosure

About 10 percent of the 2008 homeless population has been directly impacted by foreclosure, according to a report from the National Alliance to End Homelessness.

However, most of those deemed homeless as a result of foreclosure were renters, not homeowners.

“Interestingly, of those surveyed, shelter providers and transitional housing providers reported a lower proportion of individuals homeless due to foreclosure than other types of service providers,” the report said.

“This may be because other agencies, such as food assistance providers or legal aid, serve those who are very low income or on the brink of homelessness. To that end, when housing and shelter agencies are isolated from other types of service providers, the portion of those homeless due to foreclosure decreases to 5 percent.”

A related report that looks at quantitative data collected by Continuum of Care organizations found that foreclosure was the reason for homelessness in just 1.3 percent of cases in San Francisco and 2.9 percent of cases in Indianapolis.

Issues such as job loss, alcohol-drug use, and eviction were much more likely to be the cause of homelessness in these cities.

Most affected by foreclosure did not seek legal assistance, and were now either living with family/friends or in emergency shelters.

Back in January, Fannie Mae launched its so-called “National Real Estate Owned Rental Policy” to protect tenants affected by foreclosure.

Months later, RealtyTrac launched “Renter Alerts” to notify tenants if the properties they occupy enter into default or are set to be foreclosed on by the bank or mortgage lender.

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