More than 1 Million Hispanics Face Foreclosures

A report by a Latino advocacy group and the University of North Carolina was released early this week. The report says minority families are being disproportionately hurt by the housing crisis and need relief from foreclosures even if they lost their jobs, as well as the chance to buy affordable homes and stronger consumer protections.

By 2050, Latinos will make up 30% of the U.S. population, compared to 14% today, and immigrants will account for 82% of household growth between now and 2050, according to the National Council of La Raza, which conducted the study jointly with the Center for Community Capital, University of North Carolina at Chapel Hill.

The report focused upon the hardship on the Hispanic population and minority groups in the United States. The findings were based on interviews with 25 Latino families in five regions.

Researchers also cited national statistics indicating 60% of Latinos have observed foreclosures in their neighborhood and cash buyers accounted for 25 percent of second-quarter sales last year, turning owner-occupied homes into investment properties.

According to the report, more than one million Hispanic/ Latino workers have lost their jobs. Latino workers have experienced the largest increase in unemployment in any group since the recession began in December, 2007.

It is estimated that over 1.3 million Hispanic families will lose homes due to foreclosure between 2009 and 2012. American taxpayers been forced to pay for different bailouts through the federal government. The unemployment rate has hit double digits in many parts of the country and the real figures are even higher than that.

Many people have fallen out of the unemployment statistics because their unemployment has run out, but they are still unemployed. Even more people are underemployed, working at part time jobs that they are over qualified for.

The study talked to families who recently experienced foreclosures. The research showed the negative impact that foreclosures have on family relations.

As a result of foreclosure, spousal relationships frequently suffered. Signs of depression, increased anxiety and tension, and feelings of guilt and resentment were commonplace.  The foreclosure had a ripple effect on relationships in extended family and social networks.

Public benefits became a lifeline for many, while those without often skimped on needed medical care to save money. Children’s academic performance and behavior at school were impacted significantly. Parents reported troubling changes in their relationships with their children and the children’s relationships with each other. Several stated that their children blamed them for the foreclosure.

While loss of income was the major cause of foreclosure, most families experienced problems. Families suffered financial burdens for draining family resources include a healthy emergency, illness and resetting of the mortgage payment.

The families, whose full identities were not disclosed, reported frequent moves, strained family relationships, marital discord, anxiety, depression and poor academic or job performance following the foreclosure. Some said they skipped taking medication or seeing doctors because they lacked insurance or couldn’t afford it, while others said they came close to becoming homeless.

The study also found that families lost an average of $89,155 because of foreclosures and had to rely on food stamps and other public assistance. None reported being offered a loan modification or other help from their lenders. All but one family exhausted their savings in an effort to keep their home, and now have little or no money for emergencies.

Researchers found that while several of the families had reached out to the financial institution for assistance, none were offered a sustainable forbearance, workout or loan modification plan to help them stay in their home.

Markets hit hardest with this problem are Nevada with 66% of borrowers having negative equity, Arizona with 51%, Florida with 49%, and California with 42%. These states were home to 42% of the Latino population in 2008.

The Americano / Agencies

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