When an adult loses his home to foreclosure, it can sound like just another case to add to a pile of others. But behind many who lose their home, they have families to worry about, children who need a roof overhead.
A recent report is a necessary reminder of the effect that the foreclosure crisis and overall economy is having on kids. According to the National Center on Family Homelessness, child homelessness has increased 33% from 2007 to 2010. That’s 1.6 million homeless children and 168,000 homeless families.
Currently, this crisis affects states with a traditional poverty problem and/or a high rate of foreclosure. The affordable housing problem tends to increase when banks take back properties. Why? Because banks want to sell the houses, not rent them.
Renting houses is not bank business. As foreclosures increase, the number of potential rental properties decrease. Less supply added to the increase in demand because purchase home financing is difficult to qualify for and obtain creates an environment of increasing rental prices.
If families can’t buy or rent, the recipe for homelessness is in place. And the phenomenon is creeping across the country.
The new homeless are professionals who have been laid off and run out of benefits. The families try to stay intact, but it becomes increasingly difficult for both parents to find employment in the same area.
Veteran homelessness is decreasing through government programs that help keep them in their homes.
The first best solution involves families remaining in their own homes. The foreclosure process can be fought, and the banks want to reduce their losses as much as possible. So, there is room for negotiation. A knowledgeable and aggressive foreclosure attorney can help make a negotiation possible.
USA Today: “Report: Child homelessness up 33% in 3 years,” Marisol Bello, Dec. 14, 2011