Foreclosures are Not an Economic Malaise But are Now Posing a Health Crisis
Photo by Steve101
During the first six months of this year foreclosures had moved slowly but once more it is picking up speed. Last August NODs were served to 78,000 households for the first time – it being a spike of 33% from last July.
A federal programme targeting help to troubled house owners who were either without jobs or under-employed, with a fund of $1 billion was terminated very recently. In 2010 there were 2.9 million units in the foreclosure zone; this year during the first six months another 1.2 million slipped in.
Foreclosures are not an economic malaise but are now posing a health crisis. When the breadwinner of a family becomes ill they fail to report to work and become unemployed while facing heavy medical bills. Consequently they face trouble making their mortgage payments.
But this is not the full story. Increasing research is showing that by itself foreclosure is harming the health of neighbourhoods, families and individuals. A survey conducted in 2008 showed 250 people were facing foreclosure in Philadelphia. Among them 32% failed to attend their appointments with the doctor and 48% said that they have not been able to buy prescribed medicines. The figures are higher than any other area.
A study released by National Bureau of Economic Research indicated that those residing in areas with high concentrations of foreclosure in Florida, California, Arizona and New Jersey were likely to be more prone to hospitalization than those living elsewhere for ailments like high blood pressure, diabetes and heart troubles.
Over a third of the house owners under study showed signs of severe depression. The study by NBER informed that more suicide attempts have been made in foreclosure riddled areas.
Out of one hundred foreclosures there was an increase of 12% in visits to the emergency leading to hospitalization connected with anxiety for adults below the age of fifty. Loss of home leads to breaking of ties with neighbours, schools, work and providers of health care; under normal circumstances these ties lead to betterment in health.
Most of the projects funded by the federal government to control the foreclosure tide depend on housing counselors of non-profit agencies who work at close quarters with the house owners to find a monetary solution to the problem.
Due to circumstances these counselors have become crisis counselors. 395 such counselors were surveyed. Out of them 37% said that during the past one month they have dealt with at least one person who has been thinking of committing suicide. Thus any settlement talk should include funds for health care.
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