Listening to talk radio this morning, one “topic” related to the homeless. The hot button for this issue appears to have evolved from a comment by Bill O’Reilly regarding a comment by a “former presidential candidate,” regarding veterans and homelessness. Commenting on this issue without the substantial information would be foolish. Yes, veterans are homeless, yes, they need help, who is correct on this issue, is not of concern. Veterans have already given, they should be able to “get.”

 

Locally, in Fauquier County, homelessness will increase. Who will house the 1,000 non-veteran Fauquier residents who will become homeless during calendar year 2008? That is correct: no less than 1,000 people will be displaced from their residences, many with no place to go, no transportation, no place to “store” their belongings, and, or no money. People ranging in age from 1 day – 100 years old, those of all race, color, creed, nationality, all, just like you and me. Why will they be “out on the street,” without basic shelter? They owned or rented “real” property in Fauquier County. “Real property” is the land on which a dwelling exists, in place.

 

For some, their landlord’s are “loosing the home.” Most renters will not receive any notice that the bank has foreclosed on the property that they are renting. One day, the bank shows up, and the eviction process has begun. Where do they start, how do they retrieve their “security deposit,” who do they turn to for help? Others, “live-in” property owners themselves, may have lost their jobs either by lay-off, or by other means; had a medical emergency; encountered $2,000 in unexpected costs, or any of a hundred other viable reasons, and they will, or have lost their homes to foreclosure. Now many may blame the families, their “gaudy” home, their adjustable rate mortgage, their 0% down payment, their extravagant living. Surely, in some cases, that assumption may be correct, however consider other plausible possibilities.

 

Case study: In 2004 - 2006, a family of four purchases a “mid-level” home on the DC side of Warrenton. Like many families, the household consists of two-income-earners, and two children. They purchased with a 10 % down payment and 90% financing with a fixed rate loan. Each parent, educated, experienced, hard-working, and tax-paying adults had employment when they purchased the home, however, one being employed in construction (substitute your job) has encountered numerous “non-working” days due to lack of work, or bad weather.

 

Some may recognize the warning signs early, some may not, however, being responsible adults they review their “financial status.” Gasoline, up; food, up; medical insurance, up; real estate taxes (up 50% in two years); their “financial status” has weakened. Their “savings account” has been funding their “shortfall” for 2 – 4 years, and it is about empty. They decide that the only responsible thing to do is to sell their home, rent, and regroup.

 

Except: their home, along with other resident’s homes in the local area, has undergone a “market adjustment.” Now adjustments are always hard to make, however, this one is a real doozie. The median sold price for a home in Fauquier in 2005 was $419,000; the median sold price for a home in Fauquier in 2007 was $375,000, and falling. Their 10% down payment is gone, disappeared into thin air; their savings account is exhausted, and now they, the sellers, need to bring $15,000 to settlement to “sell the home,” or let it go to foreclosure. Many good people do not have a choice: which one would you choose?