Foreclosure datapoint of the day

By Felix Salmon
August 18, 2009
it works the other way round too:

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We knew that medical costs can lead to foreclosure. But it turns out it works the other way round too:

Nearly half of people studied while undergoing foreclosure reported depressive symptoms, and 37 percent met screening criteria for major depression, according to new University of Pennsylvania School of Medicine research published online this week in the American Journal of Public Health.

This is surely one reason why loan modification is hard and time-consuming: you’re dealing with people who are, in many cases, clinically depressed. But it’s also a reason why there’s a strong public interest in minimizing foreclosures and making sure those loan mods happen.

(Via Marr)


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“We knew that medical costs can lead to foreclosure.”

I thought poor budgeting to not include your health care costs AND house payment lead to foreclosure? The depression is just the realization that you screwed up.

Granted, there are some people that just have had some rough times and hard luck, but, for the most part, when you enter into a contract, you know what you’re getting into and shouldn’t be looking for a government hand out to fix your problems.

Posted by John Rowa | Report as abusive

Also, you’re dealing with finance people at the banks who are clinically moronic. A friend tried to buy a house on a short sale last month and the banker’s demands included a one page essay on why housing prices are going down. My buddy played along for almost a month with no answer ever coming back from the bankster. It was not a bad offer at all, and was pretty much in line with market rates in the area. The banks just kept asking for more and more information while refusing to accept any deadline. It was laughable by the end, like when the bank asked for my buddy to pay for a third market assessment of the home. The banks have no intention of modifying those loans. I don’t know what they’re planning, but loan modifications just are not in the cards.

Posted by GaryD | Report as abusive

Budgeting for health care costs is impossible as long as health insurance is tied to your job. This is one more example of why we need better social safety nets in the US. Sure, there are some people who bought houses well beyond their means, but if you lose your health insurance and have even a moderately major issue then you are hosed.

Posted by Argel | Report as abusive