This report examines the backlash of the foreclosure crisis and the many families that became homeless as a result. With the decline economy, there is a correlated decline in the revenue to support social programs and charity organizations. This leaves many families in need without a place to turn and no policies to safeguard their livelihoods. (HRC)
The foreclosure crisis – fueled by the subprime loan meltdown – is increasingly welldocumented.
Nationally, more than two million foreclosures were reported in 2007. Nearly
the same number is projected for 2008-2009. [See Appendices 1 (2007) and 2 (2008-09)].
The resulting downward spiral has reduced home prices in some areas by nearly twenty
percent. In turn, this has the sent the local city and county revenues based on local
property taxes into freefall.
Nearly forgotten in this crisis are the thousands of homeowners and renters who have
become homeless once their equity is exhausted. Having no other financial resources,
they are moving in with relatives or friends, are turning up in local emergency shelters or
have actually found themselves on the streets. Equally disturbing is that when local
revenues plummet, the first budget cuts are typically to health, mental health and
emergency programs. Often these are the very programs those who become homeless
will need to survive. (Authors)