Crowdfunding: New Way to Fight Foreclosures?
July 31, 2013
If the bank or government can’t save a person from foreclosure, can a crowd? “Crowdfunding” sites are on the rise as desperate home owners turn to trying to raise money from friends, family, and strangers to try to stay current with their mortgage payments.
“Listings asking donors to ‘Help save my children's home’ and ‘Help avoid foreclosure’ are popping up across dozens of fundraising Web sites like GoFundMe, Indiegogo, FundRazr, and GiveForward,” CBS reports.
The sites were created as a way to help people fundraise for specific causes, such as medical bills, youth sports, education, or now saving a home. The sites will take a portion of the donations collected, about 4 to 10 percent.
Foreclosures are sometimes viewed as an “avoidable crisis,” so troubled home owners are having mixed luck on the sites so far, CBS reports. For example, CBS notes that in about 100 campaigns on GoFundMe, less than 1 percent have been able to raise enough to save the home. However, one couple has been able to raise on GoFundMe more than $7,500 of the $15,000 they need to save their home from foreclosure.
Source: “Home Owners Fight Foreclosure Through Crowdfunding,” CBS (July 30, 2013)
Updated: August 16, 2019