Say HUD policy causing unnecessary evictions in foreclosed homes
On Friday, October 25, 2013, over 30 protesters confronted Department of Housing and Urban Development (HUD) Secretary Shaun Donovan as he attended a benefit event in Cambridge. The protesters, including foreclosed homeowners facing displacement due to HUD rules, are demanding a change to policies they say are causing unnecessary evictions and worsening the impact of the foreclosure crisis.
Picketers on the cold October night chanted and handed out leaflets to guests entering the 30th Anniversary Gala for the Harvard Square Homeless Shelter. Several benefit attendees expressed support for changing the HUD policy in question, and protest leaders stressed their respect for the Shelter's work.
“Congratulations to Harvard Square Homeless Shelter and supporters, and thank you to Secretary Donovan for coming,” noted Steve Meacham, an organizer with City Life. “But, our members are faced with homelessness due to a stupid HUD policy that has got to change.”
Representatives of both City Life and Lynn United for Change said they had no choice but to confront HUD after two years of private discussion with the agency failed to change a policy that is causing unnecessary evictions.
Several people directly impacted by HUD's policy spoke to the crowd of protesters, explaining the problem and how it has affected them. Protesters also distributed a letter from another homeowner whose family is facing eviction, as her offer to repurchase her foreclosed home is being blocked by HUD policy.
When a bank forecloses on an FHA-insured mortgage, it must then transfer the property to HUD's control in order to collect the insurance payout. Currently, HUD requires banks to evict all residents before making that transfer. For years, advocates and legal services attorneys have been urging HUD to change this policy.
The groups organizing the protest, City Life/Vida Urbana and Lynn United for Change, say they have helped hundreds of families find alternatives to eviction following foreclosure. In many cases, families who were victimized by predatory loans are able to repurchase their homes after foreclosure with the help of a non-profit lender. In other cases, families are able to pay rent following foreclosure. But those solutions are impossible in cases involving FHA-backed mortgages that are subject to HUD's policies.
"HUD's rule makes no sense," said Ingrid Dibbles, a City Life member and foreclosed homeowner. Dibbles explains that she was approved for a loan by a non-profit lender, and offered to repurchase her home for current value. This could not happen because HUD insisted on eviction, leaving the foreclosing bank unable to accept the offer. "This is bad for the families that get evicted, bad for the surrounding neighborhood that has to deal with an empty home, and bad for HUD," Dibbles concluded. "They are supposed to be preventing homelessness, not contributing to homelessness."
Press contacts:
Isaac Simon Hodes, Lynn United for Change 781-346-9199
Steve Meacham, City Life Vida Urbana 617-524-3541 x310
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