That is not correct.
The housing units will not sit abandoned. When one party moves out, another party will move it, resulting in no net difference in the number of homeless, regardless of the increase in foreclosures.
This is off the main topic, but I think it would be fairer to say the headline and deck (summary text below the headline) misrepresent what’s in the story itself, which appears to be a decent little human-interest feature. In print journalism, the author of a story usually does not write the headline or deck. He can certainly suggest one, but an editor or sometimes a designated headline writer will determine the final text. This is done in part because the skill to encapsulate a story in a few words in a way that will entice readers to read further is different than the skill required to research and report a news story or feature. I would speculate that an organization with the resources of the BBC would also have specialists to write its online headlines and decks to appeal to both human readers and search engines. The downside of this practice is that occasionally you have a headline writer who either misunderstands the author or slants a summary in an attention-grabbing way.
Thay find more cost effective housing. The vast majority of these people do have jobs and lives, they just got into mortgages that they could not afford once the variable rates shot up. Some of those hikes were as much as a 30% increase in the monthly payment, and extra $300-$500 a month on top of someone who overextended themselves to make the intro payment rate can be a budget killer. Toss in a work injury, major car repair, or family crisis that requires time off from work for any reason and its all over.
It is possible to get a 2-3 br apartment in an ok neighborhood here (Fresno, CA) for $750/month. Compared to the $1320/mo my house was costing thats a huge difference. I was looking at a studio for $465 including partial utilities a few days ago. There are tons of rentals out there to be had well within the reach of those who have been foreclosed on. In many ways, the rental biz is booming right now.
Drach…foreclosed on homeowner. Long story…wasn’t just the payment difference, other personal issues.
Whoosh. That was irony. I was attempting to point out (with a very old article) that it is hardly new, has little to do with the foreclosure crunch, has most definitely been addressed, and was recognized on a national level as being addressed. It was the main reason Newsom won the election. Sorry, I thought the rolleyes made that clear.
:smack:
And I wish I owned a few rental units right now. In south Orange County, CA right now, a nice 2 bedroom apartment can run you from $1000 all the way up to $2300.
There’s at least one “tent city” here in SJ, away in a corner where you would not find it. It is occupied by Day workers, Mexican for the most part, and many likely Illegal. It is filthy, and the inhabitants are not friendly to outsiders. Nearby are a few homeless encampments- again filthy, again not friendly to outsiders.
If you owned a house, generally that means you have a job, as drachillix said… Lose that House and you move into an Apt or even one of those “rent by the week” places. Or back home, even. Some might live out of their car for a while. I doubt we will see any in a “tent city”. Some very few *might *be in a tent, in a park for a bit, but tent cities are for homeless people.
Muffin is also correct- Foreclosures do not mean houses sitting empty forever. Sure, maybe a few months longer, but the price then goes down and the couple who was living in an apt who almost could afford a house, now buys it*. That apt is then occupied by the foreclosed couple. When Condos are foreclosed they are often rented- sometimes to the very dudes who “owned” it before, if the market is bad.
- Which couple may have higher income than the Foreclosed couple, as smart dudes were waiting until they really could afford that house. For example, I am now looking for a Condo. I earn a good income, but I figuered I really couldn’t afford a house. Now, in some Condo complexes, the prices have dropped drasticly. My cheap little apt will doubtless be filled within a short time after I move out.