Assumable Mortgages

 Perhaps the best-kept secret in real estate circles is an opportunity called assumable mortgages. This unique type of financing enables house hackers to turn back the clock on interest rates, scoring loans as low as 2%. This results in increased buying power.

What are Assumable Mortgages?

Assuming a mortgage means taking over the seller’s existing loan rather than originating a new one when purchasing a home. All government-backed loans, such as FHA and VA loans, are assumable. There are millions of these assumable mortgages in existence. In 2020 and 2021, when most new mortgages came in below 4%, around one-third of those loans can now be assumed.

How the Assumption Process Works

Similar to a traditional mortgage application, assuming the mortgage from the seller requires going through underwriting with the mortgage servicer when you assume the loan. The current mortgage servicer will want to verify you have adequate funds and credit history aligned with the loan requirements. They will also conduct any other due diligence as part of the approval process.

When you assume a mortgage, you become accountable for the remaining loan balance and take over the seller’s monthly payments while keeping the existing interest rate. To take on the loan balance, you’ll need to buy out the seller’s current equity in the property.

Consider this scenario for a potential seller:

• Property value: $300,000
• $60,000 in equity
• 2.5% interest rate

You would need to bring $60,000 to closing, leaving you with a remaining loan balance of $240,000 at 2.5% interest.

In situations where a larger down payment is mandatory, you may be able to take out a second mortgage for 80% of the LTV ratio. Although the second mortgage would have today’s interest rate, your blended rate between both loans would be far lower versus taking out a brand new mortgage.

If you opt for this strategy, calculate your savings based on the blended rate of the two loans to see if pursuing the assumable mortgage makes financial sense.

Types of Assumable Mortgages

You can’t assume just any seller’s mortgage. As noted earlier, all government-backed loans are eligible for assumption, provided you satisfy the eligibility and underwriting conditions.

Here are some examples of assumable government-backed loans:

FHA (Federal Housing Administration): If you don’t currently have an FHA loan, you can assume one.

VA (Veterans Affairs): You don’t need to be a veteran to assume a VA loan.

USDA (U.S. Department of Agriculture): These are likely in more rural locales, so if that’s where you want to buy, look into this option.

In contrast, most conventional loans are not assumable. That’s because they often have a due-on-sale clause requiring the outstanding balance be paid off when the property is sold. There are some exceptions for conventional loans: successor in interest (after a death), divorce, and a family purchase.

Why Capitalize on Assumable Mortgages

Assumable mortgages can be a huge asset for house hackers. Before you can leverage them, it’s vital to grasp the ways they can jumpstart your investment portfolio.

Increased Mortgage Eligibility

As an astute house hacker, you have a distinct edge since you’ll occupy the property as your primary residence – a prerequisite for getting approved for an assumable government loan.

Lower Interest Rates

Recently, interest rates reached a 23-year peak. So why purchase a home at over 7.5% when you could assume a mortgage with a rate as low as 3%?

Let’s assume your down payment is $35,000. If you bought a $350,000 house at just over 3% instead of 7.5%, your monthly payments would be approximately $1,360 versus $2,380. That equates to over $12,000 in savings per year. Consider how much easier it will become to offset those payments and transform that home into a cash-flowing asset down the road.

Improved Cash Flow

Ask any investor browsing the MLS or off-market deals, and they’ll likely say cash flow is scarce these days. In contrast, those who purchased properties during the era of historic low rates looked like investing geniuses, even if they weren’t.

A byproduct of low interest rates paired with a potentially larger down payment from an assumable mortgage is increased cash flow, both now and later. While occupying the property, you may be able to live for free, lower expenses, or put extra money in your pocket.

The wealth snowball really picks up momentum when you move to your next investment. You can rent out the space you formerly lived in to generate more income – whether that’s an extra unit, in-law suite, ADU, or bedroom.

What’s the Catch?

If assumable mortgages are so beneficial, why don’t more people use this strategy?

To put it simply, finding an assumable mortgage on your own is challenging. And even if you locate a suitable home with an assumable loan, the lack of knowledge around the assumption process poses another obstacle.

Now, house hackers have access to resources to overcome both hurdles.

Finding an Assumable Mortgage Simplified

Historically, locating homes with assumable mortgages has been extremely difficult. Keyword searches for “assumable mortgages” on real estate sites only produce a handful of results. The vast majority stay concealed in plain sight.

Thankfully, new platforms are emerging to solve the assumable mortgage discovery problem. These sites aggregate and analyze public records, MLS data, and other sources to identify homes with assumable loans.

For house hackers, this finally provides a straightforward way to find assumable mortgages. Rather than spending countless hours combing through records yourself, you can use these platforms to instantly see listings with assumable loans.

The process has gone from endlessly searching for a needle in a haystack to simply filtering for assumable mortgages with the click of a button. These new resources help remove the main obstacle that’s prevented more people from capitalizing on this powerful real estate investing strategy.

Streamlining the Loan Assumption Process

Did you know approximately 29% of homeowners have an FHA or VA mortgage? Yet the FHA has only processed around 3,300 assumptions this fiscal year – just a tiny fraction of what’s out there.

Part of this stems from limited access to a database of assumable mortgages. The other part of the equation comes down to three factors:

Unfamiliarity: Because of the small number of annual assumptions, many agents, buyers, and sellers are unfamiliar with the process.

Lack of incentive for mortgage servicers: Mortgage servicers earn more by originating a new loan versus an existing mortgage. Servicers also make more in interest from higher rates.

Paperwork: The assumption process tends to take longer than a typical sale. There’s very specific documentation to ensure the loan successfully transfers. Incorrect filing or missing information can delay closing.

You can certainly take this on yourself if desired, but you don’t have to. For a 1% fee, Roam oversees everything to keep the transaction on track. This includes managing loan servicers, assisting with paperwork, and making the process turnkey for agents.

https://www.american-apartment-owners-association.org/property-management/house-hacking-with-assumable-mortgages/

Willscot Mobile Mini nearing $3 bln deal to acquire McGrath RentCorp

 Portable storage solutions company Willscot Mobile Mini is nearing a $3 billion plus deal to acquire business-to-business rental company McGrath RentCorp , the Wall Street Journal reported on Sunday.

https://www.marketscreener.com/quote/stock/WILLSCOT-MOBILE-MINI-HOLD-42413884/news/Willscot-Mobile-Mini-nearing-3-bln-deal-to-acquire-McGrath-RentCorp-WSJ-45827862/

China Evergrande Receives Winding-Up Order From Hong Kong Court

• Order may end up in new management, judge says in order
• Trading in the stock halted after court orders wind-up

China Evergrande Group was ordered to be liquidated by a Hong Kong court, a stunning legal coda for the world’s most-indebted property developer.

A wind-up could end up in management being replaced and addressing some issues, Judge Linda Chan said in the city’s High Court on Monday morning.

https://www.bloomberg.com/news/articles/2024-01-29/china-evergrande-receives-winding-up-order-from-hong-kong-court

Holcim eyes $30 billion valuation with North American business listing, picks new CEO

  Switzerland's Holcim will spin off 100% of its North American operations in a New York flotation which could value the business at $30 billion, the building materials giant said on Sunday, as it also named a new chief executive.

Miljan Gutovic, currently head of Europe at Holcim, will replace Jan Jenisch as CEO beginning May 1, said the company, one of the world's biggest cement makers.

In the biggest shake-up at Holcim since the Swiss company took over French rival Lafarge in 2015, the divestment will likely be completed in the first half of 2025.

The spin-off could value the new company at around $30 billion, Jenisch told reporters, with Holcim retaining no stake.

"We're going to do a full capital market separation of our North American business, so we will list 100% of the business on the New York Stock Exchange," said Jenisch, who was confident of getting shareholder backing for the flotation.

The U.S. business aims to boost annual sales from around $11 billion at present to more than $20 billion and generate operating profit of more than $5 billion by 2030, the company said.

The rest of Holcim's global business - in Europe, Latin America, Africa and Asia - would remain listed on the Swiss blue chip SMI index, and focus on building solutions like roofing products.

Jenisch, who has led Holcim since 2017, will remain as chairman and will lead the planned listing in the U.S., where building materials companies trade at higher earnings multiples than in Europe, potentially improving its valuation.

Describing the U.S. as one of the world's most attractive construction markets, Jenisch said the move would help the new company capitalize on the region’s infrastructure and construction boom.

Holcim is the biggest cement maker in North America, where it employs 16,000 people across 850 sites. The business competes in the region with companies like Carlisle, and RPM in building products and solutions, and Eagle Materials and Summit Materials in the cement industry.

https://finance.yahoo.com/news/switzerlands-holcim-spin-off-north-112826250.html

Earnings call: SL Green Realty reports robust Q4 with strategic advances

 SL Green Realty Corp. (NYSE:SLG) concluded the fourth quarter of 2023 on a strong note, with CEO Marc Holliday highlighting a series of strategic achievements and expressing confidence in New York City's real estate market recovery. The company saw an increase in office leasing activity, with a particular uptick in the financial services sector, and signed leases with a range of tenant sizes across various industries. SL Green also made headway in its debt reduction efforts and is actively seeking investment opportunities in New York City, aiming to raise a minimum of $1 billion for capital allocation. The earnings call revealed plans for the future, including a business plan for the vacant 2 Herald asset and a strategy to reduce floating rate exposure. Questions from participants focused on the 2 Herald transaction, the company's debt fund, and leasing activities.

Key Takeaways

• SL Green Realty reported increased office leasing activity and progress in debt reduction.
• The company is raising capital with a target of at least $1 billion for investment opportunities.
• Discussions included the 2 Herald asset, debt fund, and various investment ventures.
• Executives expressed confidence in New York City's office market fundamentals and investor interest.
• Leasing pipeline consists of a mix of renewals and new tenants, with many deals involving expansion.

Company Outlook

• SL Green is optimistic about the recovery of New York City and is forming capital pools to increase liquidity.
• The company plans to announce a business plan for the vacant 2 Herald asset in the coming months.
• Executives discussed a hedge against interest rates, expecting it to be beneficial in the future.

Bearish Highlights

• The company acknowledged a mixed mark-to-market on pending deals, with some negative outcomes.
• The NOI at Herald Square does not currently cover the ground lease payments.

Bullish Highlights

• Positive mark-to-market outcomes are expected to drive the overall average up due to large deals.
• Increased tenant interest in the Park Avenue corridor and other submarkets is noted.
• The company is actively negotiating on 2 Herald and sees potential value in their alternative strategy portfolio.

Misses

• There is a potential lag between lease-up and cash flow generation, but the company is on track with guidance.
• Guidance on EPS and FFO differs due to gains on debt extinguishment.

Q&A Highlights

• Questions focused on the 2 Herald transaction, leasing activities, and the company's debt fund.
• Executives provided clarity on the company's position regarding 2 Herald, stating no ownership of mortgage or mezzanine pieces.

https://www.investing.com/news/stock-market-news/earnings-call-sl-green-realty-reports-robust-q4-with-strategic-advances-93CH-3284317

Home Selling Profits Drop in 2023 for First Time in Over a Decade

 

Profits on Home Sales Across U.S. Decrease for First Time Since 2011;
Typical Seller Gains Remain Strong, But Decline from 60 Percent to 57 Percent;
National Median Home Price Rises at Slowest Pace in 12 Years

IRVINE, Calif. – Jan. 25, 2024 — ATTOM, a leading curator of land, property and real estate data, today released its Year-End 2023 U.S. Home Sales Report, which shows that home sellers made a $121,000 profit on the typical sale in 2023, generating a 56.5 percent return on investment.

But even as both gross profits and profit margins remained near record levels, they decreased from 2022, marking the first declines in either category since 2011.

The gross profit on median-priced single-family homes sales dipped down from $122,600 in 2022 while the profit margin dropped, year over year, from 59.8 percent. That happened as the median nationwide home price rose at the smallest annual pace in more than a decade.

The profit fallback came during a year of ups and downs for the U.S. housing market that featured flat prices early in 2023, followed by a spike in the Spring and a drop-off in the fourth quarter. Price patterns were mixed as the upward pressure of strong employment and investment markets, along with a historically tight supply of homes, competed with the downward force of home-mortgage rates that rose during most of 2023.

“Last year certainly stood out as another very good year for home sellers across most of the United States. Typical profits of over $120,000 and margins close to 60 percent were still more than double where they stood just five years earlier,” said Rob Barber, CEO at ATTOM. “But the market definitely softened amid modest price gains that weren’t enough to push profits up higher after a long run of improvements. In 2024, the stage seems set for more small changes in prices as well as seller gains given the competing forces of interest rates that have headed back down in recent months and home supplies that remain tight, but home ownership costs that remain a serious financial burden for many households.”

Among 129 metropolitan statistical areas with a population greater than 200,000 and sufficient sales data, sellers in western and southern states again reaped the highest returns on investment in 2023. The West and South regions had 12 of the 15 metro areas with the highest ROIs on typical home sales last year, led by San Jose, CA (99.4 percent return on investment); Knoxville, TN (98.1 percent); Seattle, WA (92.9 percent); Spokane, WA (90.6 percent) and Scranton, PA (89.6 percent).

National Median Home Price Rises at Slowest Pace Since 2011

The U.S. median home price increased 2.1 percent from 2022 to 2023, reaching another all-time annual high of $335,000. The typical 2023 price has more than double the nationwide median in 2011, a point in time right before the housing market began recovering from the aftereffects of the Great Recession that hit in the late 2000s.

The 2023 increase, however, represented the smallest annual bump during the extended boom period that began in 2012. The full-year median home-price appreciation slowed down as interest rates rose in 2023 close to 8 percent for a 30-year mortgage.

While gains were mostly small, median prices still rose from 2022 to 2023 in 97, or 75 percent of the 129 metropolitan statistical areas around the U.S. with a population of 200,000 or more and sufficient home price data last year. Those with the biggest year-over-year increases were Hilton Head, SC, (median up 12.2 percent); Naples, FL (up 10.6 percent); Hartford, CT (up 10.5 percent); Savannah, GA (up 10.5 percent) and Rochester, NY (up 9.7 percent).

Aside from Hartford and Rochester, the largest median-price increases in metro areas with a population of at least 1 million in 2023 came in Miami, FL (up 8.6 percent); Cincinnati, OH (up 8.1 percent) and Milwaukee, WI (up 6.9 percent).

Metro areas where median prices dropped most in 2023 were Austin, TX (down 6.2 percent); San Francisco, CA (down 4.4 percent); Stockton, CA (down 4.4 percent); Boise, ID (down 4.1 percent) and Phoenix, AZ (down 3.8 percent).

Profit Margins Drop in Two-Thirds of Nation, with Worst Declines in South or West

Profit margins on typical home sales decreased from 2022 to 2023 in 84 of the 129 metro areas with sufficient data to analyze (65 percent). That happened as the 2.3 percent jump in the median sale price nationwide in 2023 fell behind the typical 4.4 percent increase recent sellers had been paying when they originally bought their homes.

The 40 largest decreases in investment returns were all in the South or West, led by Port St. Lucie, FL (ROI down from 104.5 in 2022 to 82.7 percent in 2023); Austin, TX (down from 67.2 percent to 46.2 percent); Phoenix, AZ (down from 79.3 percent to 60.6 percent); Reno, NV (down from 80.6 percent to 64.5 percent) and Salt Lake City, UT (down from 68.3 percent of 52.2 percent).

Aside from Austin, Phoenix and Salt Lake City, the largest ROI losses from 2022 to 2023 in metro areas with a population of at least 1 million were in San Francisco, CA (ROI down from 92.7 percent to 79.5 percent) and Las Vegas, NV (down from 74.3 percent to 61.8 percent).

The biggest increases in investment returns from 2022 to 2023 came in Scranton, PA (ROI up from 75.1 percent to 89.6 percent); South Bend, IN (up from 53.6 percent to 66.5 percent); Hartford, CT (up from 53.2 percent to 65.8 percent); Rockford, IL (up from 48.8 percent to 57.8 percent) and Rochester, NY (up from 53.8 percent to 62.8 percent).

Aside from Hartford and Rochester, metro areas with a population of at least 1 million and increasing profit margins in 2023 included Cincinnati, OH (up from 54.8 percent to 61.2 percent); Cleveland, OH (up from 48 percent to 53.4 percent) and Milwaukee, WI (up from 52.9 percent to 57.2 percent).

Gross Profits Still Top $100,000 in More Than Half the Country, with Largest Again Clustered on West Coast

Despite the small national decrease, gross profits on median-priced home sales in 2023 still topped $100,000 in 77, or 60 percent, of the 129 metro areas with sufficient data to analyze.

The West region had 12 of the top 15 gross profits in 2023, led by San Jose, CA ($698,000); San Francisco, CA ($476,000); San Diego, CA ($354,000); Los Angeles, CA ($330,000) and Seattle, WA ($325,000).

The 15 smallest gross profits in 2023 were in the South and Midwest, reflecting lower home prices in those areas than elsewhere. They were led by Peoria, IL ($35,500); Davenport, IA ($41,052); McAllen, TX ($46,167); Baton Rouge, LA ($47,600) and Toledo, OH ($49,800).

Homeownership Tenure Up to Two-Year High

Homeowners in the U.S. who sold in the fourth quarter of 2023 had owned their homes an average of 7.96 years, up from 7.8 years in the third quarter and from 7.67 years in the fourth quarter of 2022. The latest figure represented the high point since the third quarter of 2021. Average seller tenures were up, year over year, in 80, or 71 percent, of the 113 metro areas with a population of at least 200,000 and sufficient data to analyze.

The biggest increases in average seller tenure from the fourth quarter of 2022 to the fourth quarter of 2023 were in Chico, CA (up 20.9 percent); Modesto, CA (up 12.7 percent); Clearlake, CA (up 11.9 percent); Madera, CA (up 11.2 percent) and Tucson, AZ (up 10.5 percent).

The longest tenures for home sellers in the fourth quarter of 2023 were in Barnstable, MA (14.18 years); Santa Cruz, CA (13.2 years); Bridgeport, CT (13.14 years); New Haven, CT (13.08 years) and Worcester, MA (12.57 years).

Cash Sales at High Point Since 2014

Nationwide, all-cash purchases accounted for 38 percent, or about one of every three single-family home and condo sales in 2023 – the highest level since 2014. The latest portion was up from 36.1 percent in 2022, although still off from the 44.7 percent peak this century in 2011.

Among 186 metropolitan statistical areas with a population of at least 200,000 and sufficient cash-sales data, those where cash sales represented the largest share of all transactions in 2023 included Macon, GA (61.5 percent of sales); Naples, FL (58.9 percent); Myrtle Beach, SC (56.3 percent); Youngstown, OH (55.1 percent) and Salisbury, MD (54.4 percent).

Lender-Owned Foreclosure Purchases in U.S. Up Slightly, but Still at One of Lowest Levels Since 2005

Foreclosure sales to lenders accounted for just 1.5 percent, or one of every 67 single-family home sales in 2023. That was the third lowest level since 2005. The 2023 figure was up from 1.2 percent of sales, or one in 83, in 2022 but still far below the peak of 23.6 percent in 2009.

 States where lender-purchased (REO) foreclosure sales comprised the largest portion of total sales in 2023 were Illinois (3.9 percent of sales), Michigan (3.9 percent), Wyoming (3.3 percent), Louisiana (3.1 percent) and Alaska (2.9 percent).

Among 156 metropolitan statistical areas with a population of at least 200,000 and sufficient data, those where lender-purchased foreclosure sales represented the largest portion of all sales in 2023 were Binghamton, NY (8.5 percent of sales); Flint, MI (8.4 percent); Peoria, IL (6 percent); Lansing, MI (4.8 percent) and Macon, GA (4.6 percent).

Among 55 metropolitan statistical areas with a population of at least 1 million, those with the highest levels of lender-purchased foreclosure sales in 2023 were St. Louis, MO (3.9 percent of sales); Chicago, IL (3.6 percent); Detroit, MI (3.5 percent); Honolulu, HI (2.9 percent) and Birmingham, AL (2.8 percent).

Metro areas with the smallest shares were Raleigh, NC (0.3 percent of sales); Denver, CO (0.3 percent); Phoenix, AZ (0.4 percent); Tucson, AZ (0.4 percent) and San Francisco, CA (0.4 percent). All five had populations of at least 1 million in 2023.

Institutional investing Down in 2023

Institutional investors nationwide accounted for 6.1 percent, or one of every 16 single-family home and condo sales in 2023 in the U.S. The latest figure was down from 7.6 percent in 2022 but was still at a higher level than previous years.

Among metropolitan statistical areas with a population of at least 200,000 and sufficient institutional-investor sales data, those with the highest portions of institutional-investor transactions in 2023 were Memphis, TN (14.3 percent of sales); Indianapolis, IN (11.6 percent); Yuma, AZ (11.1 percent); Atlanta, GA (10.4 percent) and Birmingham, AL (10.2 percent).

FHA Sales Reverse Three-Year Decline

Nationwide, buyers using Federal Housing Administration (FHA) loans accounted for 8.8 percent, or one of every 11 single-family home and condo purchases in 2023. That was up from 7.5 percent in 2022, marking the first increase after three straight annual declines.

Among metropolitan statistical areas with a population of at least 200,000 and sufficient FHA-buyer data in 2023, those with the highest share of purchases made with FHA loans were Merced, CA (24.2 percent of sales); Bakersfield, CA (22.3 percent); Lakeland, FL (21.8 percent); Visalia, CA (19.4 percent) and Modesto, CA (19 percent).

https://www.attomdata.com/news/most-recent/attoms-year-end-2023-u-s-home-sales-report/

9th Circuit Is Wrong: There's No Homelessness Protection Clause In Constitution

 by Paul Larkin and Zack Smith via The Epoch Times,

Once upon a time, constitutional interpretation actually involved interpreting the text of the Constitution.

It’s not a blank slate. Its words have actual meanings.

While the federal 9th U.S. Circuit Court of Appeals recognizes that the Constitution contains words, the judges on that court seem to think they can ascribe any meaning—no matter how outlandish—to those words.

One of their latest provocations can be found in a series of three cases: Martin v. City of Boise, Johnson v. City of Grants Pass, and Coalition on Homelessness v. San Francisco.

Martin, the lead case, held that the government may not punish a homeless individual for sleeping on public property if there is no bed in a secular facility for him or her to use free of charge. (The decisions actually go much further, but let’s take it slowly.)

Now, that ruling might surprise most people, because the government holds public property for the benefit of the public and has the same right to decide who can sleep (or camp, or micturate, or do No. 2) on public property that private parties have to protect their own property. Plus, there is neither a homeless protection clause in the Constitution, nor a right-to-sleep-on-public-property clause.

To be fair, the 9th Circuit did point to a passage in the Constitution—the Eighth Amendment’s cruel and unusual punishments clause—that the court thought justified its ruling. This provision prohibits the infliction of “cruel and unusual punishments.” (Yes, we had the same puzzled look that you now have, but read on.) It says nothing about whether the government can criminalize certain conduct.

But the 9th Circuit mistakenly thought that the Supreme Court’s decisions in Robinson v. California and Powell v. Texas held that an act must be voluntary for a state to make it a crime and sleeping is involuntary. Accordingly, the laws at issue must fall.

But legal interpretation is not like Creative Writing 101 or a class on cubism. There is a limit as to how far the Supreme Court’s words can be stretched before the reader distorts their meaning.

Robinson held that the state cannot make it a crime to be addicted to drugs (as opposed to possessing or distributing drugs), while Powell held that a state may define public drunkenness as a crime. The latter decision, written by Justice Thurgood Marshall (who was hardly an “extreme MAGA” Republican), is particularly relevant because it expressly distinguished being drunk in public from being drunk at home, with the former being a fit subject for a criminal sanction.

That decision should have made short work of the case, but it wouldn’t have given the 9th Circuit the result it wanted. So, a little improv was necessary.

In the second case, Grants Pass, the 9th Circuit went even further and held that the city could not enforce criminal or civil penalties in an attempt to enforce the city’s anti-camping laws.

And, most recently, in Coalition on Homelessness, Judge Patrick Bumatay, dissenting from the decision, said the 9th Circuit “let stand an injunction permitting homeless persons to sleep anywhere, anytime in public in the City of San Francisco unless adequate shelter is provided.”

He went on to say that this “represents yet another expansion” of the 9th Circuit’s “cruel and unusual Eighth Amendment jurisprudence.” He explained that in reality, though, the decision itself is “cruel because it leaves the citizens of San Francisco powerless to enforce their own health and safety laws without the permission of a federal judge.” And he said the decision is “unusual because no other court in the country has interpreted the Constitution in this way.”

After all, the state’s decision to prohibit sleeping on public property is not an irrational or mean-spirited attack on the homeless. The homeless encampments that have taken over the streets in places like San Francisco, Los Angeles, and Seattle rob the public of the opportunity to use those areas safely.

Plus, as Sam Quinones, a journalist who has chronicled America’s ongoing drug crisis, put it, “[t]hough other drugs and alcohol are part of the mix, many encampments are simply meth colonies.”

Homeless encampments are rife with open drug sales and use, along with prostitution and the fact or threat of violence—including violence against the homeless in those camps—and they are governed by the law of the jungle, as the strong prey on the weak.

Fortunately, the U.S. Supreme Court last week agreed to hear the Grants Pass case and has a chance to undo the damage done by the 9th Circuit’s bizarre use of the Eighth Amendment’s cruel and unusual punishment clause to prohibit cities from protecting their own residents and properties.

Whatever you can say about the policy choice reflected by the 9th Circuit’s rulings, those decisions make almost no pretense of finding a home in the Constitution. They are result-oriented jurisprudence at its worst, proof that an intellectually dishonest judge can reach any result he or she wants just by writing grammatically correct sentences and sprinkling in a few citations to, or quotations from, Supreme Court decisions.

The Supreme Court should reverse the 9th Circuit’s judgment in the Grants Pass case, allow public officials to address the problems of homelessness and public safety, and order that the judges responsible for that atrocity be publicly (at least metaphorically) spanked—a fitting punishment that no doubt most honest observers would find neither cruel nor unusual.

https://www.zerohedge.com/markets/9th-circuit-wrong-theres-no-homelessness-protection-clause-constitution