Are Foreclosure Evictees Homeless?

Posted in Foreclosure, September 18th, 2008 |

Washington is in a dilemma. Unemployed people are being thrown out of their homes. Are they to be defined as homeless or are foreclosure evictees to be considered homeless?

For 20 odd years according to the federal law those living in streets and shelters were termed as homeless. But now the House and the Senate are considering the use of the term in a wider context. Anybody who is in jeopardy of losing his or her house that is the home to be considered as homeless. This will mean those who have been hit by foreclosure and are camping with friends and relatives or somehow passing days in motels as homeless. They are living a hand to mouth existence waiting for the little cash they have to run out.

The House will vote on this matter in September. It will expand the term homeless to embrace another million extra people. Within this group will be added more numbers when children are included. People running away from homes because of domestic violence will also come under its gambit. Anybody who can prove that their homes will be lost within the next fortnight will come under the category of homeless. It is the foreclosure crisis with its socio-economic ramifications that has primarily led to the swelling of the numbers of homeless.

The Senate wants to narrow down the extension by suggesting that only those who have had to move out three times in a single year, or once in three weeks will be termed homeless. The debate of expanding or contracting the connotation of the term will continue and it is doubtful if any decision will be taken this month.

In all likelihood some sort of expansion of the term is inevitable. This will put an additional burden on the services provided by HUD. It will require an additional sanction of $1.7 billion for the homeless. The Bush government understandably is not too keen on further expansion of the term and strain on the budget. Meanwhile foreclosures continue to push the people onto the streets. Some are even living in their cars and vans. Unfortunately none of the bills are attached with provisions for extra funding.

The Democrats have always boasted for being the champions of the poor. But even they are bemoaning the fact that the money is not there to back up the expansion of the meaning of homeless in real terms. The Republicans are taking this opportunity of accusing their rivals of turning away from the thousands rendered homeless by foreclosures.