Subject: Foreclosure ripple effect: 8.3 million children in jeopardy
From: "Molly Magarik" <[email-masked]>
To: "B" <[email-masked]>, "Ted Kaufman" <[email-masked]>, <[email-masked]>, "Eric Schwerin" <[email-masked]>, "Alexander Snyder-Mackler" <[email-masked]>
Date: Thu, 19 Apr 2012 16:26:30 -0400

http://economywatch.msnbc.msn.com/_news/2012/04/19/11286474-foreclosure-ripple-effect-83-million-children-in-jeopardy?chromedomain=lifeinc
Foreclosure ripple effect: 8.3 million children in jeopardy
By Allison Linn

When we think of foreclosure, we tend to think of the tremendous financial
toll it takes on adults. But a new report sheds light on the millions of
children who are having their lives thrown into disarray by the crisis as
well.

The analysis of foreclosure
data<http://www.firstfocus.net/sites/default/files/Foreclosures%202012_0.pdf>,
prepared for the children’s advocacy group First Focus, finds that as many
as 2.3 million children have lost their homes to foreclosure. In addition,
the report finds, another 3 million are at risk being displaced from their
homes due to foreclosure.

The researchers also say that an additional 3 million kids could be
affected by foreclosure because they live in a rental home that is either
in foreclosure or at risk of being foreclosed upon. That means more than 8
million children are either affected or at risk.

Julia B. Isaacs, a senior fellow with the Urban Institute and the author of
the report, said a foreclosure can hurt children in several ways.

When a school-age kid has to move unexpectedly, it often means that they
must switch schools mid-year. Isaacs said other research has shown that
kids who switch schools have lower levels of math and reading achievement,
even after controlling for other factors such as poverty.

Such moves also are associated with higher rates of kids dropping out of
high school, and such a big upheaval can be difficult socially for children.

The parents’ financial stress also can impact the kids. Isaacs said
research dating all the way back to the Great Depression showed that when
parents are under great financial stress they may be less supportive
parents. That, in turn, can lead to social and behavior problems.

“This affects how parents interact with each other and how they interact
with their children,” she said.

Isaacs’ analysis used Census data on living arrangements of families
combined with estimates of foreclosures by state to come up with the
estimates.

http://www.suntimes.com/business/12005158-420/study-foreclosures-take-toll-on-kids.html
 Study: Foreclosures take toll on kids

BY JULIE SCHMIT April 19, 2012 12:08PM

One in 10 U.S. children has been or will be affected by the nation’s surge
in foreclosures, a new report says.

Five years into the foreclosure crisis, an estimated 2.3 million children
have lived in homes lost to foreclosure, according to a report from First
Focus, a Washington, D.C-based bipartisan advocacy group focused on
families.

Another 3 million children live in homes at risk of foreclosure because
home loans are in the foreclosure process or are seriously delinquent. And
3 million children lived or live in rental homes lost to foreclosure or at
risk, the report says.

“Children are the often invisible victims of the foreclosure crisis,” said
report author Julia Isaacs. She did the study while at the Brookings
Institution and is now a senior fellow at the Urban Institute’s Labor,
Human Services and Population Center.

Isaacs analyzed foreclosure and U.S. Census Bureau data to estimate the
number of children affected. The report is the second released by First
Focus on the crisis’ impact on children, and the organization says it’s the
first to estimate the number of children affected who live in rental
properties.

Not surprisingly, the impact on children is greatest in states that were
hardest hit by the foreclosure crisis. In Nevada, almost 1 in 5 children
lived or live in owner-occupied homes that were lost to foreclosure or are
at risk of being lost, Isaacs estimates.

Elsewhere, the percentages fall to 15 percent in Florida, followed by 14
percent for Arizona and 12 percent for California. In Alaska and North
Dakota, only 2 percent of children are affected, the lowest rates in the
country.

Being forced from home affects children’s health, interrupts development
and hurts their performance in school, said First Focus President Bruce
Lesley.

For every forced move that occurs during a school year, a child’s math and
reading scores drop as much as if they’d missed a month of school, Isaacs
says, based on a synthesis of 16 studies.

Isaacs warns that the number of affected children could be even larger. Her
estimates are based on mortgage loans made from 2004 to 2008, which
captures the bulk of risky loans that contributed to the housing bubble.
But it doesn’t cover loans outside of that time. The estimate also fails to
adjust for the possibility that loan delinquencies may be higher in
families with more children, the report notes.

States with the highest percentage of children affected by foreclosures of
owner-occupied homes or in homes at risk of foreclosures:

Nevada, 19%

Florida, 15%

Arizona, 14%

California, 12%

Michigan, 10%

Illinois, 9%

Maryland, 9%

Rhode Island, 9%

Colorado, 8%

Georgia, 8