Abandoned homes being occupied in Belmont Cragin and Auburn Gresham on Tuesday – part of a national day of action called by Occupy Our Homes  – underscore the failure of banks to deal with the foreclosure crisis.
In Belmont Cragin, Communities United Against Foreclosure and Eviction  are moving two homeless sisters and their children into a single family home that was abandoned sometime after foreclosure was filed in 2009. The group couldn’t determine whether a final disposition has been made on the property.
They think it could be one of the thousands of “red flag” properties, where banks and loan servicers “may choose to reduce the costs associated with a long-term vacant home by walking away from the foreclosure process instead of completing it” in order to evade the costs and legal reponsibilities of ownership, according to a Woodstock Institute  report (see earlier post ).
In Auburn-Gresham, kicking off its “Homes for the Holidays” drive, the Chicago Anti-Eviction Campaign  is moving a family which lost its home to foreclosure into a home that was abandoned by a longtime resident after JP Morgan Chase refused to consider a loan modification. The owner gave the keys to AEC, which like CAUFE has done signficant repairs on the building.
Foreclosures have continued to climb over the past two years, since the Obama administration promised to help millions of troubled homeowners. But because their program allowed for voluntary participation by banks – instead of requiring institutions that had been bailed out to give affordable modifications to qualifying homeowners – it has helped only a small portion of those initially targeted.
Meanwhile lenders widely noted for being unresponsive to homeowners have now acknowledged extensive fraud in foreclosure filings.
In Austin, South Austin Coalition is taking over and boarding up an abandoned building that’s hosted extensive criminal activity less than a block from May Elementary School. The building was foreclosed on by Citibank, said Elce Redmond of SAC.
“We’re going to go after the bank to pay for the boardup,” Redmond said. “Longterm we want to pressure the banks to turn these homes over to community organizations and churches so we can rehab them and put families in them.”
“We have so many unemployed people and so many vacant properties,” said Willie JR Fleming of AEC. “It’s obvious we need to put people to work rehabbing them so we can put families back in them.”
Fleming emphasizes that “we are enforcing the human right to housing. We are not asking for human rights. We are enforcing them.”
Occupy Our Homes reports similar actions “to stop and reverse foreclosures” in 25 cities on Tuesday, as “the Occupy movement joins with homeowners and people fighting for a place to live.”