by Jeanette Huston

Created on: April 10, 2009   Last Updated: April 15, 2009

The impact of foreclosures on children and families is devastating and far reaching. Families are not only losing homes but whole communities are being affected as well. Since the recession foreclosures have increased traumatically and they are on the rise in the US today. What could be more devastating than losing your home? Believe it or not, the answer to this question is worse than anyone could have anticipated!

Since the rise of foreclosures families have had to worry about the increase of criminal activities in their area. Now that more homes are vacant people have places to help facilitate many criminal activities. Also vacant homes are a magnet for vandalism. More children are becoming more susceptible to being exposed to such activities and possible recruitment of terroristic groups. Crime becomes more of a problem for communities as a result of the increase in foreclosing homes.

Because of an increase in foreclosing homes there has been a decrease in annual budgets in communities. Lower property values create a smaller tax base. This ends up costing families millions. This means less money in everyone's pocket. This causes many communities to struggle and many businesses to file for bankruptcy.

One of the impacts of foreclosures is that families become more vulnerable to financial scams. I am talking about loans with high interest rates and loans constantly changing it terms draining people's financial assets. People become desperate in a financial crisis so they turn to predatory lenders and lending companies.

One of the victims that foreclosures affect the hardest is the children. A study proves children raised in an unstable environment experience developmental problems in the future. Children caught in the middle of foreclosures often feel as though they are a financial burden on their families. Many children as a result will make sacrifices for their families such as quitting school activities that require money and taking on part time jobs to help their families financially. The stress and confusion of changing lifestyles can also effect children's grades and self-esteem. The effects of foreclosure can also cause many negative behavioral issues among children as well.

Many residents impacted by foreclosure are forced to move in with family, shelters, or even forced to live on the streets. This causes an increase of homeless people in the US. Whole families are becoming destitute. This means families and even children begging for food, becoming susceptible to illness, and having less than decent hygiene. Many of these people turn to a life of crime in such desperate circumstances.

Foreclosures not only affect families who lose their homes but other families who reside in the same community. Foreclosure is a devastating impact on our economy and the number of homes foreclosing is increasing every day. The government is constantly coming up with new strategies to battle foreclosure. Until we find away to stop the increase of foreclosure then we will always have the problems that result from families losing their stability and foundation of home life.

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