The “rent after foreclosure” solution as an alternative to bank bailouts

As resistance to foreclosure evictions grows among homeowners, community leaders and some law enforcement officials, a broad civil disobedience campaign is starting in New York and other cities to support families who refuse orders to vacate their homes.

As the New York Times reports:

“The community organizing group Acorn unveiled the campaign with a spirited rally on Friday at a Brooklyn church and will roll it out in at least 22 other cities in the coming weeks. Through phone trees, Web pages and text-messaging networks, the effort will connect families facing eviction with volunteers who will stand at their side as officers arrive, even if it means risking arrest.”

Surprisingly, such campaigns have garnered sympathy from certain law enforcement officials.

Judge Charlie Green of Lee County Florida, cited in the Wall Street Journal, declared:

“…stay in your homes — if the American people, anybody out there, is being foreclosed, don’t leave.”

“Sheriffs in some places have also taken a stand. In Wayne County in Michigan, Sheriff Warren C. Evans, suspended all evictions starting Feb. 2 until the federal government implements a plan to help homeowners facing foreclosures.

In Cook County in Illinois, which includes Chicago, Sheriff Thomas J. Dart directed a lawyer to review all eviction orders to protect people who kept on paying rent after the buildings where they lived had been seized by banks. In Butler County in Ohio, Sheriff Richard K. Jones ordered his deputies not to evict people who had no place else to go.

“This is a cold place in the winter and I will not give people a death sentence for not paying their debts,” Sheriff Jones said in an interview. “These are human beings, responsible middle-class people who fell on hard times, and I just can’t toss them out onto the streets.”

Dean Baker proposes that such “rent after foreclosure” solutions should be policy:

“Why should taxpayers support convoluted schemes to protect these bank executives and their shareholders from their own ineptitude. We can protect homeowners by simply giving them the right to stay in their home as renters following foreclosure. It’s a simple, costless and bureaucracy-free solution, but it screws the banks. So, the folks in Washington and the media apparently are not interested.”

4 Comments The “rent after foreclosure” solution as an alternative to bank bailouts

  1. AvatarConan May

    Please, can you PM me and tell me a bit more about this, I am really fan of your blog.

  2. AvatarMichel Bauwens

    Dear Conan,

    Not sure what ‘PM’ means .. We have republished/cited this from another source but do not have any special relationship with that initiative.

    Michel

  3. AvatarObama Foreclosure

    Good post – I found this while scanning google for foreclosue info – added ya to my G Reader, Keep up the good work. Looking forward to reading more. Mark

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