Foreclosed Homes Create Homelessness in California
April 2nd, 2009 by 
Joseph Smith
The flood of homes to foreclosure has left hundreds of families in California homeless and in despair. Most of these homeless families were forced to seek emergency refuge over the winter. In fact, the number of families of foreclosed homes who were seeking emergency refuge in Los Angeles County has increased twice as much as last year.
According to data released by the Los Angeles Homeless Services Authority, about 620 families of foreclosed homes sought vouchers for hotel or motel stays in 2008’s winter shelter program. The 2007 winter shelter program recorded 330 families as its beneficiaries.
The surge in the number of families seeking emergency refuge has been expected. California foreclosures and foreclosed homes reached 84,600 in 2008 and are expected to rise dramatically to 237,200 this year.
And as lenders offer cash bonuses to distressed homeowners who voluntarily surrender their foreclosed homes and as they extend short sales, an additional 300,000 foreclosed homes are expected to join the market before the year ends.
Meanwhile, the rise in the number families seeking emergency refuge has been occurring in various shelters in the state.
Homeless Service Authority executive director Rebecca Isaacs pointed out that families bore the brunt of the economic crisis. She cited several factors that trigger homelessness, including increase in rent, eviction, unemployment, domestic violence, foreclosures and health tragedy.
The Homeless Service Authority has an extra budget of about $4.3 million to fund various winter shelter programs from December 2008 to March 1, 2009.
On the other hand, Los Angeles County reported a 4 percent increase in the total number of individuals who sought shelter this winter. The Union Rescue Mission reported a 14 percent rise in individuals and 631 percent increase in families at its four affiliated winter shelters.
Reverend Andy Bales, chief executive officer of the mission, noted that foreclosures are affecting more families than individuals. He added that individuals who recently lost their jobs were more likely to stay with a family member or friend.
This is not the case with homeless families. It would be difficult to find someone or other families who would be willing to share their abode to homeless families.
Meanwhile, the growing number of families seeking refuge at Union Rescue Mission’s Burbank shelter has caused disgruntling among neighbors who are concerned about sex offenders.
Burbank is considering whether the city will host the shelter in 2009.
