A pillar of the American Dream is owning a home with a lawn and picket fence. But I question the conventional belief that we ever really own our homes under capitalism. With the commodification of housing also comes a precariousness that no one is immune to.
For most people, purchasing a house is made possible by securing a mortgage from a bank: a 15, 25, or 30-year financial obligation (for instance) to repay the debt with interest. After 3 months of non-payment, banks typically start foreclosure proceedings. As long as there is a mortgage, we do not own the house, the bank does. What homeowners really have are two things: 1). the temporary privilege of being a tenant, and 2). a prayer that the market remains relatively stable.
Even if there was never a mortgage on the house or the mortgage has been paid in full, you can still lose your property. Being “delinquent” on property taxes and/or other municipal fees can result in the City placing a lien on your property. As more and more cities are strapped for cash, many are auctioning these debts off to third-party investors to recover costs. These investors charge a ridiculous amount in interest (ranging between 18-50%), fees, and legal costs for homeowners to get the title to their homes back. The entire process is shrouded in mystery and confusion; which works to the advantage of investors who just want to make a quick buck. If you cannot pay the newly skyrocketed balance, you lose your house and all the equity. There have been cases where homeowners have lost property worth $200,000 because they owed just a few hundred dollars in taxes/fees.
Even if your mortgage and taxes are paid in full, you can still lose your property. Being “delinquent” on utility bills (i.e. water and/or sewer) can result in – once again – a lien being placed on your property. These liens are purchased by third-party investors who add interest, fees, and legal costs. If you can’t pay – tough luck – your house is gone. An egregious case happened in Rhode Island a few years ago: an 81-year old woman owed $400 on her water bill. An investor purchased this debt at an auction for $800, kicked her out, and then sold the house for $85,000.
Even if your mortgage, taxes, and utilities are all paid in full, you can still lose your property. The government has the authority to seize private property through the process of Eminent Domain. The Fifth Amendment to the U.S. Constitution declares that “private property [shall not] be taken for public use without just compensation.” In other words, the government can take your private property – as long as it is used for public good and you are paid fairly for it. But this law is violated all the time. In 2005, the Supreme Court [Kelo vs. City of New London] ruled that private property can be seized and sold to a private developer because “economic development” counts toward “public use.” This is particularly troubling for black and brown neighborhoods that are being gentrified across the country.
June 5, 2018 at 5:22 pm
This is so very true and so very sad! How “owning a home” was ever considered “The American Dream,” is just beyond me especially seeing as how, like you say, you never really own the home. We’re basically nothing more than squatters and with no squatters rights.
But now that wages are low, there are many people who no longer even try to ‘own’ a home since many are what is considered, ‘homeless’ these days as in those living in motels and those who have pitched tents anywhere they can. Speaking for myself, before I’d ever try ‘owning’ a home again, I’d rather pitch a tent. That way, it won’t feel so bad when they come and take my tent because I’ll not have invested, in some cases, hundreds of thousands of dollars into it.
We should ALL just ‘squat’ on the sidewalk. They cannot arrest us ALL! Nothing makes any sense, nothing! And things are only getting worse!
Great post!
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June 5, 2018 at 5:28 pm
Hey Shelby! Thank you! You are right about more and more people being pushed away from the housing market toward renting. Property values are high, wages are low, and interest rates are creeping higher. It is a shame.
It is awful the way local governments have “tent cities” destroyed in cities with high costs of living.
We need to de-commodify housing. Housing should be a human right. If you exist, you should have decent shelter, period. No ifs, ands, or buts about it. We are continuously fed the lie that there is a “housing shortage” – but in actuality, there ard 6 empty homes for every homeless person. There are more peopleless homes than homeless people. Investors and governments would rather these places sit empty because they are unprofitable. Why cant governments use that eminent domain clause to seize abandoned houses and then turn them over to those who are homeless? Its sad
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June 6, 2018 at 3:22 pm
Fuck those opportunist investors and also fuck anyone whose authoritarian actions make another human being feel bad or even incriminate for simply existing. Whether they know it or not, they’ll have to answer to Love one day, and they’re going to be horrified by how they turned away from it in life and hurt people because of their decision to choose money over it. I also don’t believe in private property. We are here to live for a short while and God provides everything we need. Nothing more, nothing less.
Thanks, Darryl.
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June 6, 2018 at 6:07 pm
Right on! I am all for rolling out the guillotine for these parasites.
I dont believe in private property, either. It is a violation of the commons that we were provided by the Creator. I hope for the day when we can realize we are all connected and better hope off if everyone has shelter, not just those who can afford it.
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