Weekly Roundup: Foreclosure Squatters Edition

One of the links below points to a post that asks the question, “Is Squatting in a Foreclosure Acceptable?” It’s rare for me to take the bank’s position on things, but in this case, I do not think squatters should be allowed to bog down a legal recourse to a default on a mortgage loan. I do like to see banks attempt to work out a payment plan before kicking someone out, but after an honest try, I think the banks should be allowed to remove the owners and collect whatever value they can from the home to offset their loss.

Instead, “squatters” should focus that same energy spent squatting on working to expand the safety net already in place for those forced out of their homes – churches, shelters, rental assistance programs, etc. Admittedly, I might feel differently if it was my family about to be tossed out on the street. Just my two cents – what are your thoughts on the subject?

The Frugal Roundup

Letter From a Thief. This letter goes out to everyone. Read it carefully. (@brip blap)

Is Squatting In a Foreclosure Acceptable? This isn’t a full article but I thought it was very interesting question. Basically, there is a group out there that helps homeless families move into foreclosed homes until they can be sold. (@My Dollar Plan)

The Cost of Negativity. I think everyone has experienced this type of individual at work. The lesson that Trent gives really hits the nail on the head. (@The Simple Dollar)

Best of the Rest

Comments

  1. Just wanted to say, I totally agree with you regarding the squatting. I am all for getting something for nothing if it is honest. However, I know people personally who are taking advantage of the system. They say ‘but it is how the system is set up, there is nothing illegal’. That is probably true, but we are all going to have to pay for this housing disaster one way or another.

    • I’ve received number of emails from people who think these people ought to be allowed to squat wherever they want because the banks are at fault for misleading/mismanaging over the years. Someone even suggested this could be a way to reduce homelessness – move homeless people into foreclosed homes, subsidized by the the government.

      I’m all for providing shelter to those who need it, but that solution sounds like an expansion of public housing, and would do very little to break the dependency we now have on government. It’s hard for me to be for any plan that makes us less independent.

      • IF these homes are Fannie/Freddie Gov’t owned (and not all are), then while one COULD say they belong to the public, but on that same vein they would belong to ALL the public and as such the Gov/t has the responsibility to get them resold as quickly as possible and recoup the public’s losses.

        It’s not like these buildings are sitting empty forever (at least out here) – they do resell within 3-6 months or so – and the banks are taking most any decent offer now.

        And note these foreclosed homes do not have electric nor water on – how are squatters legally dealing with that?

  2. Goes back to what I learned before Kindergarten even – if it’s not yours, leave it alone. If you don’t have permission to enter a place, stay out of it. And stay off other people’s properties….

    This was taught to us before we could even walk, I am sure.

  3. What most people don’t realize is the squatters completely destroy these homes. The squatters do not take care of the homes and usually leave them absolutely trashed and worth significantly less money than when they moved in. Not only do they hurt the banks, but the previous owner who might have been relying on the bank selling the house for enough to cover his/her debt to avoid bankruptcy, but they bring down the neighborhood as well.

  4. years ago I said we should just rent a foreclosure out to the previous owner as a way to prevent homeless issues and let them repair their credit. Of course the bank would lose money and the owner would lose a lot also.

    Giving people a fair chance is one thing, not letting them pay for their mistakes is another thing. 5 years ago if you didn’t make your house payment, you were kicked out pretty quickly. Now you can squat for a few years before losing your house. That isn’t fair to people of the past or in the future once this large foreclosure mess is behind us.

    In regards to the people damaging property and selling off anything work money, those people should be jailed for their actions. I mean they are already living for free, why do they need more money?

  5. I squatted on my foreclosure for almost 2 years. I sent my last mortgage payment in June 2007. I answered the door while holding my 3 month old daughter in my arms when the process server delivered the foreclosure papers. My daughter’s mom and her son from a previous marriage moved out in December 2008. I finally vacated the house in May 2009. In less than one year, I faced the meanest creatures that the court system can ever unleash upon a man – a bankruptcy trustee and a female family court judge.

    One thing I DID NOT DO was trash the place before leaving. I knew I was at fault, and I am not a spiteful person.

    I wasn’t paying the mortgage, but it was hardly “free.” My “free” living came at a great cost. A relationship that functioned like a marriage totally broke down. I was separated from my daughter for several months. It weighed heavily on my conscience. My A++++ credit score went down the drain.

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