As the state of the economy hovers around dangerous lows, many Americans have faced financial hardships. In the past, people that suffered from overwhelming debt loads and the risk of foreclosure were those who simply mismanaged their money. A new report now shows an interesting trend away from personal responsibility towards unavoidable economic factors.
Over the past few years, news reports of the downtrodden housing market have plagued TV stations and local news hours. Originally thought to be the effect of unreasonable lending practices, many have begun to look at additional factors for the foreclosure boom. Although lending practices have needed increased regulation and policing, a new report shows that unemployment is one of the largest reasons behind the foreclosure many Americans are facing.
When asked about personal debt burdens and difficulty maintaining adequate financial care of big items such as a mortgage, homeowners report unemployment and underemployment as the main culprit. Over 60 percent of Americans blame economic conditions of the job market as the reason for losing their home to foreclosure compared to only 12 percent for poor money management. Divorce and spousal death also made the bottom of the list, along with increased medical expenses.