The foreclosure process isn’t easy for anyone involved. The bank loses much of the money they invested in the loan and the homeowner is left without a place to live and damaged credit. Rarely has anyone stopped to consider the impact that a foreclosure has on the children in the evicted family, until now.
Impacting The Next Generation
A new report was recently released titled “The Ongoing Impact of Foreclosures on Children”, which summarizes the negative consequences associated with the foreclosure process on the children who experience the process. It is estimated that 8 million children across the United States will be directly impacted by the mortgage crisis, and 2.3 million have already been a part of the foreclosure process. With another 3 million at serious risk of experiencing foreclosure, the report evaluates the potential for negative outcomes as a result of the mortgage debt problems in America.
Including the effects on children of both owned and foreclosed rental properties, the report lists four consequences experienced by those involved. First, school attendance and grades can be impacted when families are forced to move from their current residence. Parenting styles and support systems break down during stressful times, which are highly likely in a foreclosure situation. The overall health of the family tends to suffer when finances become tight and additional stress is placed among family members. Last, families of foreclosure have an increased risk of relocating to a less stable neighborhood to save money, which can be correlated with an increase in crime rate.