Sadly enough, the home foreclosure crisis isn’t yet over in America. More than one million properties were taken over by banks in 2010 compared to the 100,000 that were seized in 2005 before all of the sturm und drang. Among the states hardest hit were California, Florida, Arizona, Illinois, and Michigan which, combined, accounted for over half of the total foreclosures.
Because an estimated quarter million proceedings were temporarily halted late in 2010, the numbers for 2011 aren’t expected to be very hopeful. Buckle up, folks, the ride ain’t over.
With their hands forced by the economy, some people are making creating end-runs around their mortgage woes. In one scenario, the original mortgage holder shares ownership with someone else in order to relieve some of the financial pressure. Another option is to set up a housing co-op or intentional community within the confines of your home.
In both instances, the benefits extend far beyond merely saving money. Participants gain community and companionship while sharing – and, in turn, reducing – resources. Once again, something that makes sense financially also makes sense socially and environmentally.
Duwamish Cohousing, West Seattle, WA
When considering buying into an existing home mortgage, be sure to weigh all of the factors. Is there any equity? Is the house “upside down,” meaning the value is lower than the balance owed? Do you have good credit and financial stability?
Once you look at all of that, it may very well make sense. Two single mothers or retirees joining forces to share a home could be exactly what both of them need. An owner of a duplex who sells half to his long-time renters may save them both from eviction.
Setting up an intentional or cohousing community is a looser means to a similar end. In its simplest form, this means gathering a group of like-minded people to live together. If you already have a space, the next steps involve deciding what intention will be your centerpiece, finding people who fit, and setting some ground rules for how things will run. In essence, it’s a glorified roommate situation with a unifying theme providing some common ground.
While the notion may seem like something only a bunch of California hippies would do, it’s not. Groups are popping up in areas as far-flung and disparate as Ohio, Alaska, Indiana, Hawai’i, Massachusetts, and Texas, among other states.
In fact, the Cohousing Association logged only 37 cohousing communities into its directory between 2001 and 2005. Once the housing crisis hit in 2008, their numbers blossomed to 113. As of early 2011, they have 239 listings. And that doesn’t include the wider cooperative living net that explodes the number to more than 1,600 nationwide.
A true housing cooperative involves a bit more than just bringing together a cool group of roomies. To be a co-op is to have an actual legal structure wherein the housing is owned and governed jointly by the members of the owning organization.
While condominiums are probably the most prevalent example, housing co-ops are also enjoyed by artists, low-income families, retirees, and other groups. In total, more than 1.5 million homes in the United States belong to cooperative housing organizations.
So, as we all continue to face down our collective economic demons, we’d all do well to remember the lesson we learned as kids: it’s good to share.
