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Squatters Increasingly Calling Foreclosures Home

According to an article from yesterday's NY Times, though squatting in vacant homes has long been an issue on a smaller scale, with so many vacant foreclosures on the market, homeless advocacy groups around the country are now actively assisting homeless families to take up residence in these foreclosed properties. And overwhelmed police departments are not helping much in the eviction process.

The groups say that they have sometimes received support from neighbors and that beleaguered police departments have not aggressively gone after squatters. "We're seeing sheriffs' departments who are reluctant to move fast on foreclosures or evictions," said Bill Faith, director of the Coalition on Homelessness and Housing in Ohio, which is not engaged in squatting. "They're up to their eyeballs in this stuff. Everyone's overwhelmed."

The issue is a controversial one. Advocates see these vacant properties as an opportunity to ease the growing homeless problem in a declining economy. Though some of these groups operate secretly, others are out in the open, trying to secure legal means to move their clients into these abandoned properties.

Anita Beaty, executive director of the Metro Atlanta Task Force for the Homeless, said her group had been looking into asking banks to give it abandoned buildings to renovate and occupy legally. Ms. Honkala, who was a squatter in the 1980s, said the biggest difference now was that the neighbors were often more supportive. "People who used to say, ‘That's breaking the law,' now that they're living on a block with three or four empty houses, they're very interested in helping out, bringing over mattresses or food for the families," she said.

The organized homeless groups are also having to compete with more traditional individual squatters.

"We had a move-in that we were going to do one day at noon," he said. "At 10 o'clock in the morning, I went over to the house just to make sure everything was O.K., and squatters took over our squat. Then we went to another place nearby, and squatters were in that place also."

Mr. Rameau said his group differed from ad hoc squatters by operating openly, screening potential residents for mental illness and drug addiction, and requiring that they earn "sweat equity" by cleaning or doing repairs around the house and that they keep up with the utility bills.

I have to say this issue has me torn. I'll admit I am a fairly left-wing liberal who appreciates the effort on the part of these advocacy groups to try to find a workable, though temporary, solution to a growing problem that no one else seems to be addressing. I feel for these people who, for reasons that may be beyond their control, have found themselves and their families homeless and unemployed in a dire economic climate. At the same time I work in the real estate industry and feel for the agents who represent these properties. I feel the banks are not doing enough to properly secure and maintain these foreclosed homes. They often leave them in a dilapidated state and just "hope for the best" in terms of a sale. Rather than investing a small amount in paint, carpet, Home Staging (and some sort of security system) in order to sell these properties quickly, they let them linger on the market and become targets for squatting.

What are your thoughts?

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Annie Pinsker-Brown | Stage to Sell
Owner & Principal Designer
310-384-1084
www.stagetosell.biz

"We get you to SOLD so you can get on with your life!"

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Stage to Sell is the premier West Los Angeles Home Staging Company.

Owner & Principal Designer Annie Pinsker-Brown is an ASP Home Stager, a member of IAHSP (International Association of Home Staging Professionals), an affiliate member of the Beverly Hills/Greater Los Angeles Association of Realtors and a member of the Culver City and West LA Chambers of Commerce.

Annie has Staged LA homes for Bravo's hit show "Million Dollar Listing" and TLC's "Property Ladder." She has also been featured in recent articles on Home Staging in Los Angeles Magazine, The New York Times, Costco Connection and Frontiers Magazine.

If you would like to see more of our Home Staging work, visit our website. There is an extensive gallery of before & after photos, as well as a list of our Staged properties currently on the market.

Posted by Annie Pinsker-Brown | Stage to Sell, Los Angeles Home Stager on 04/10/2009 01:29 PM

Comments (35)

Foreclosures in the Home Selling Channel

homeless, squatting, foreclosure, real estate, home staging, security, vacant

Post is included in group: VACANT HOUSE STAGING & NEW HOMES
Post is included in group: Stage It Forward...
Post is included in group: Realtors®
Post is included in group: Housing The Homeless

35 Comments on Squatters Increasingly Calling Foreclosures Home

APR

Until this clears up, you should assume that there are squatters in the home at closing. i.e. have the home checked and be extremely careful and do not go alone. It is that common and tensions are very, very high in this market and you can't assume that the squatters are going to leave peacefully or be peaceful. My assumption is that we may have a dangerous situation and deal with it accordingly. Best to be safe than sorry.

So you buy the home and you can't move in. Now you have two squatters. It is a tough part of life, but we all need a kick in the pants at times to move forward. Thus kicking a squatter out, in time, will be in their best interest as they would most likely fall in the trap of retreating and go into massive depression.

Annie, You don't have to be a "left wing liberal" to appreciate the effort to try to find a workable, if temporary, solution to the situation of homelessness. It's a human problem and anyone can feel for these people who, for reasons that may be beyond their control (whether it be mental illness or economic disaster), have found themselves and their families homeless. I think of myself as a "moderate conservative" but I care deeply about social problems. Maybe we should just do away with "labels" altogether.

You are right! the banks are absolutely not doing their job to secure their property! There is only one solution. Alarm systems! But of course it is up to the Owner, whomever that may be, (the lender), to take care of that. I hear you that you are compassionate for homeless families, me too. Also a conservative, like Anon! But, it has to be organized and maybe a reduced rent of some kind. But with no watchdog agency to monitor the homes it is a "free for all", out there. I even hear that the banks are walking away from some of these home which will ultimately fall on the responsibility of the State where the property is located. Tax bills addressed to "Occupant" will be next!

It's a horrible situation. If you buy a house and expect to move in on X day.. and the people who purchased your house is also planning on moving in on x+1 day, etc (we all understand the horribly planned homeowners move juggling)... anyway when Sherrif offices can take 3 to 10 days to take action things get SNAFUed in a hurry.

All this being said... It is one thing to have squaters and another thing to have "organized" squaters complete with "community organizers" including protesters for hire, lawyers, TV reporters, etc.

While we want to be compassionate to those who have no where to live we can not give in to what really amounts to theft and destruction of property.

I would get some guys from Crenshaw, give them 50 bucks a piece and clear that place out!!!

But that's just me.

Happy holidays Annie!

Hi Annie

Thanks for sharing the information in your post; the squatters are becoming an increasing issue.

Good luck and success

Lou Ludwig

Where are your local police? They are the ones to call when you find strangers in your home.

Annie, I feel very sorry for them as well and am not familiar with the groups. But among other things (such as damage), I have to wonder how the neighbors feel with all these people in a vacant house next door?

The only things that happen are things that are encouraged and enabled. If we encourage and enable crime then that's the society we will have...

OH I blogged about this last year. It is a growing trend. There are groups around that are actually placing families in foreclosed homes. I do not agree with this but we are presently out numbered.

This is such a tough issue. While I feel for those that are homeless and would love to help them achieve a job and a place to live - living somewhere without paying the price is unacceptable. I don't have a solution, but I am sure that there are enough talented people that this can be addressed in a positive manner that works out for all those involved.

I am SO split on this issue, but putting my compassion for the homeless aside, it ultimately boils down to breaking the law. Look at CA and where we are at financially because we are ultimately paying for so many who are already breaking the law being here illegally (don't send me hate mail, it will be deleted and unread - so don't waste your time.) As a Home Stager this concerns me on so many MORE levels since it may very well be MY property, furniture and accessories that end up being used, damaged and destroyed if one of these advocacy groups decided that it was "the perfect place" for squatters to move in....

How do they get the utilities on without getting title to the home? That would be a problem around here. The utilities want to make sure they are not turning the power on for the person that left, and usually left owing them money.

They have turned into party houses for teenagers around her. I have found beer bottles and used condoms. In one home they decided to swing from the chandeliers.

APR

Tim, I completely agree that safety should be your first and foremost concern. If you have a vacant listing, make sure to check on it (not alone) often and definitely in the days leading up to the closing. Better to have no surprises right at the end.

Anonymous, it's true that labels often are too simplistic to address the complexities of these types of issues. Thanks for pointing this out.

Jane, I would be interested to know if any entrepreneurs have come up wtih temporary security solutions for all these foreclosed properties. Ones that could be easily and cheaply installed and then uninstalled and moved to the next property. Unbelievable that even the banks are walking away from some of these properties.

Michael, you're right that we cannot, as a society, condone what amounts to theft and destruction of property. I'm sure we can all agree on that. But perhaps some sort of organized group that oversaw placement with rules might work. What if, for instance, the occupants would have to have a clean record and be drug tested, and then they would have to sign a sort of lease on a month-by-month basis? If even banks are walking away from some of these properties, having someone there to maintain the property might not be a bad thing.

Luke, happy holidays to you too!

Lou, you're welcome. Glad to pass on this important piece of information.

Roy, according to the article the police are overwhelmed in many cases where this is becoming more prevalent and aren't making it their highest priority.

Carole, the article says that in some cases the neighbors are sympathetic and bring over food and supplies to the squatters.

Robin, I am not sure that the only things that happen are those that are encouraged and enabled. Theft, murder and many other horrible crimes are not encouraged or enabled in our society and yet they continue to happen. But in this particular situation you may be right that it amounts to condoning illegal behaviors.

Larry, I guess I missed your original post. It appears to becoming more and more prevalent as the economy worsens.

Sheila, I do have hope that our new administration will work towards a better solution to the problem of homelessness. It's definitely true that squatting isn't something that will solve the problem long-term.

Connie, it's true that as Home Stagers we are in a situation where our personal property could end up being tied up in a squatting situation. Years ago I had a "professional squatter" move into one of my Staged properties. This was his job - he went around finding vacant homes on the market and moved in, changed the locks, converted the utilities into his name, etc. They finally got him out and all my stuff was still there. I had to throw out a couple of towels and launder the bedding that had been used, but otherwise everything was pretty much as I left it. I think that Staged homes are generally less of a target (even in a foreclosure situation) because they appear well-maintained and looked-after. If a squatter thinks that an agent or owner is looking in on the property frequently, they are more likely to move on to an easier target. It's when the banks let these properties sit and fall into disrepair that a squatter will feel safe in assuming they can move in unnoticed.

Gene, I don't think in California you have to have the title to the home in order to change the utilities because we have some sort of squatters' rights laws (don't ask me why!). Turning into party houses for teenagers is probably another rampant problem. Sounds like this is another situation where a good security system would end up saving $$ in the long run.

I'm usually the one who is very opitimstic about things, so I'm going against my grain on this one, but I do feel strongly about these issues.

If the banks want to rent out the abandoned properties, that's one thing, but "squatting" is just wrong! If any of us would choose a house and "squat" there, we'd end up in jail! So should anyone who does this. It's despicable! I feel for the homeless, having known and cared for a few I've known in my life, but there are, or should be, better alternatives for them than squatting illegally on property owned by others, no matter who they are.

If the banks do rent the properties out, they would have to make sure the "renters" will allow showings and keep the house in showable condition (yeah, sure - that'll happen!). They would also have to have serious consequences if the "renters" do not vacate in time for the settlement and new owners to take possession. Truly sounds almost unworkable to me. You know the banks won't do this, because they don't/won't do much of anything now to cooperate with the buyers & their agents. It's like pulling teeth sometimes, more often than not.

One thing that could be done would be for the municipalities to purchase these properties, renovate them or sell them inexpensively to others who would fix them up as shelters for the homeless, giving incentives to do so. There are legal ways to accomplish what the community organizers (?) are doing illegally. By the way, I believe that those who are condoning and enabling these activities should have to answer legally for their actions, too.

Paula, these are all valid points. I agree that finding a way to actually make this work legally would be an uphill battle that would prove near impossible. What consequences would be legally binding on someone who doesn't have any real assets or income? Jail certainly isn't the right answer, with overcrowding of our jails just as significant a problem as homelessness. You have a good idea about the municipalities purchasing, renovating and selling the properties inexpensively as shelters. But then again, are neighbors going to want a bunch of homeless shelters in their neighborhood, bringing down their already suffering property values? If all the brilliant people in this country put their heads together I bet we could find some sort of workable solution to the homeless problem but you're probably right that squatting isn't it.

Here's another reason why Realtors have a dangerous profession. Can you imagine planning a tour and you preview a house that has possible dangerous criminals(or homeless people) hiding out inside? What if it is your listing? I haven't heard of this happening in our area. Even in the best of times, sellers have to keep the house condition the same as when the buyers viewed it until closing or they can void the contract. I'd hate to be doing all this work supervision and never see a closing!

Annie - great post, and congratulations on the feature!!! I don't have any deep thoughts here, but am learning much from the read. It's great to hear the realtors' perspectives.

On a personal level, my husband and I have had our eyes on a property 10 miles up the road. It's in a new development that is stalled due to the market. The plus is we can get this house for a steal. The negative is, out of 10 homes built to date, only one is inhabited. I think I'll ride up there today to see if anyone is squatting in "my home" or any others!

Morning Annie, I'm also torn over the plight of the homeless. I do like the " sweat equity " approach.

Lizette, I agree. Being a Realtor, particularly a female one, is dangerous. When we do consultations for people living in their homes while they're on the market, I always tell them to put their kitchen knives away for the safety of the Realtor who may be showing their home. I once heard of incidents where people were coming to open houses to rob them and used the kitchen knives as a weapon. So I never put them in my vacant Staged homes as a precaution.

Patsy, feature?? It doesn't mention a feature on my AR home page (except for the one a couple of months ago), but thank you! I'll keep checking to see if this blog is featured. Good idea to check for squatters in the home you are considering purchasing. If you love the home and can get a great price on it, it's probably a good long term investment. In the short term, you may have to deal with homeless neighbors moving into the other vacant homes in the neighborhood.

Bill, yes the sweat equity approach reminds me of Habitat for Humanity, which I think is a great group. Perhaps there's a way they could get involved!

I'm also torn on the issue because the banks are leaving themselves open for more damage and thus more 'downturn' in that particular neighborhood. Neighbors should be worried about the same thing and I think should call police but they can't make the cops take action though. I know of a group that went on TV here in the Chicago Area that said that ALL vacant homes should be made available to the homeless. Well that's just insane! How about we just let the foreclosed people stay in the house then! Oh, we have that too. Groups that won't let the sheriff's in to evict the people that have lived their for virtually free for 12 months.

Lyn, I agree that the banks are definitely making the situation worse by not taking an active role in securing and maintaining the foreclosed properties. This is such an interesting discussion to hear about not only the homeless, but also the teenagers partying and the foreclosed people who won't move out. It sounds like this is a widespread issue that goes way beyond just the homeless. Thanks for the comment.

Boy oh boy.....what a messy can of worms!

I am torn, and can see both sides of the issue.

I got to thinking that, particularly in the case of the teenagers helping themselves to the properties, swinging from the chandeliers (translation: TRESPASSING).....in this oh so litigious (sp?) society we live in, I can just see the parents of the teenagers coming back and suing someone (particularly the banks!) for not securing the property adequately, leading to their poor teen getting injured.....but it's the bizarre & very sad world we live in....fewer & fewer people accepting responsbility for their actions and instead pointing the finger of blame on others.

Thanks for the post!

Edith Schreiber - Dallas Texas

My brother-in-law's parents' home was vandalized by teenagers having a party in it. It has been vacant and for sale since his parents passed away. The police have found the boys and they are paying for the damage, but what a mess. It is tempting to put homeless people in vacant houses but it is a temporary bandaid for their problem and can have legal ramifications if anyone is hurt while they are in the home. Banks need to cooperate in speeding up the process of getting these homes sold or rented.

Edith, you're right. I'm sure the banks will eventually be sued for negligence. Then perhaps they'll do something more proactive to secure these properties. Great point.

Frank & Sharon, how awful! It's amazing that the police actually found the kids and that they are paying for the damage they caused. That's good news at least. But it's true that there are many legal ramifications of having homeless, teens, vandals, etc in the homes. It really is a lawsuit waiting to happen. Thanks for the comment.

APR

It was stated earlier in a post that maybe the banks should let the people being foreclosed on stay in that home. How bout a minimal payment by the former owners to stay there until the home is sold and a cash for keys payment to leave when the home actually sells. The size of the payment would depend up on the condition of the house. It may not be the best solution but for right now, what is?

To me, the answer seems simple: This is illegal and poses a serious threat to agents who are trying to show these properties to prospects. Further, they are dangerous to be lived in ... they may not contain smoke detectors, etc. Public housing needs to assist ... allowing people to live illegally in foreclosed properties is definitely not an answer. Many will think it's a no harm situation until someone is injured or killed. Definitely not a safe or good idea for anyone.

Best regards,
Mike

Annie, thanks for all the thought you put into this post.

I hadn't thought about it before now.

The last paragraph, the last few sentences, had a pithy point:

I feel the banks are not doing enough to properly ... maintain these foreclosed homes. They often leave them in a dilapidated state and just "hope for the best" in terms of a sale. .... they let them linger on the market and become targets for squatting.

In some instances, I wonder why they even foreclosed. The owners probably were behind, but might have been able to at least not get further behind. And the banks just blindly have followed policies that were in place for isolated cases.

Sometimes, I get so angry with the banking policies for being ineffective and short-sighted.

I don't think the banks policies are good for the communities AND from the investors perspective, these are not good policies for the stakeholders.

As for you being a left wing liberal -- you are living in LA!

APR

Annie - WOW after reading your post and all the comments, my initial reaction has calmed a LITTLE bit. But my feeling is pretty simple, "If it is not yours, DON'T TOUCH IT" isn't that what our parents taught us when we were little?

Personally if I bought a home with my hard earned money, and then went to move in and found someone illegally squatting there, I would be furious!!!

The "Squatters Rights" are totally ridiculous to me, "Rights" for people who break and enter??? If I was "Home" and someone broke into my home, I can shoot them to protect myself and my family, but if they do it before I move my personal belongings in, they have "Rights" to stay there and I have to go through legal proceeding to get them removed??? That is total BS!!!!

Alright now I am all angry again... better get off my soapbox before I say something I'll regret later :)

Harold, I think yours is really a great idea and one that should be brought up with someone who can actually do something about this situation. Of course getting the banks to pay $ to the homeowners who have defaulted on their loans would be an interesting proposition, but I like it because it takes into account the condition of the home into how much they get paid upon evacuation. Thanks for the great idea!

Mike, yes it is illegal and a serious threat to the agents. And it's a good point that they may not be safe for inhabitants if they don't have smoke detectors or are not up to code. Thanks for your comment.

Andrew, so true. I think that if they had it to do over again the banks might consider letting some of these homeowners live in their homes and working out a new mortgage or some sort of payment plan, rather than having all these thousands of foreclosures sitting on their books at once.

Jason, I totally understand your anger at this. It is definitely not a good situation for anyone involved, and taking something that is not yours is, most definitely, illegal. And after hearing all different sides of the story, I do think there are other options that make more sense.

JUN

Does anyone know how I can get squatters off my undeveloped land in Los Angeles County, CA.?

JUN

Sorry John, I don't know. I would just call the police.

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