Foreclosure can be devastating and cause losses far greater than that of the single family home. In fact, foreclosure affects all aspects of our lives – including our mental, physical, financial, emotional, and even spiritual well-being. Of course, those who face foreclosure are directly affected, but the impact of foreclosure on the homes, lives and businesses of everyone across the community.
Eventually, even those who do not face foreclosure will experience the negative effects on their lives, their neighborhoods, and their business. With foreclosure rates high today, rising home losses will affect all of us in at least one of the following eight ways.
1) Foreclosures affect neighborhood stability, jobs, local business, service-related business, crime, and property value.
When homeowners lose their homes, their families are displaced, creating numerous problems in the neighborhood. Vacant and / or abandoned properties become a nuisance for otherwise well-kept neighborhoods. Even upscale communities are not immune to the ill effects of foreclosure, as once manicured lawns are overgrown and weed, and a lack of routine maintenance is a thorn in the side of other residents and would-be buyers while lowering the real estate value of homes in the city close surroundings.
These properties are also attractive to criminals. Empty lots can become meeting places for criminals and gang activity, inviting thieves, who sometimes dismantle these houses piece by piece, taking lamps, appliances and copper pipes with them. After all, damage and loss can make repairs more expensive than the home’s worth, making it unsaleable to a permanent homeowner.
In addition, municipalities are losing much-needed jobs as a result of foreclosure. Businesses need homeowners and residents to survive, and every foreclosure leads to a decline in customers see Colorado foreclosure timeline. This also applies to service-related businesses and workplaces. With any foreclosure, there is a loss of property or property tax revenue that supports libraries, schools, parks, medical care and support services for community residents. The loss of jobs and social and support services lowers property value and creates instability in the neighborhood as homeowners move to other communities. In fact, some cities have had to file for bankruptcy in response to lost revenue due to foreclosures.
Each of them has the potential to affect all residents of a neighborhood or community, and they all result in lower property values, higher crime rates, higher unemployment, and a decline in neighborhood services, safety, and attractiveness.
2) Isolation affects our youth. Adults aren’t the only ones suffering from foreclosure. Children are especially vulnerable to its effects. Not only does it increase their stress levels when they worry about uncertainty about their family’s future, but they are also affected by their parents’ stress. Foreclosure is emotionally devastating, and parents’ worries and fears have a profound effect on their children. Along with the loss of their home, stability, and childhood friends, they usually experience a change in school and lifestyle. Extracurricular activities are often no longer possible. Some older children seek part-time employment to support their families, leaving less time to study or pursue other interests. The displaced become homeless or move to less desirable neighborhoods, leading to fear, loneliness and fear.
It has also been found that children who are victims of foreclosures have less confidence. Their self-esteem is directly affected and they are more likely to exhibit behavioral problems, have health problems, and experience declines in grades or interest in school, exercise, and friendships. The trauma is made worse when these children leave behind their belongings or pets, leaving them little or nothing of their previous life.
3) Foreclosure causes health problems, depression, and has been the psychological force behind many suicides since the foreclosure crisis began.
I’ve witnessed the stress of foreclosure for homeowners firsthand. Stress contributes to many physical and psychological