The Children are Paying the Price for the Foreclosure Crisis

May 7th, 2009 | Tags: Foreclosure Crisis

It is the children who are paying the maximum price for the foreclosure crisis. Pamela Parsley is one of the money mothers who is vainly trying to explain to her little ones why they can’t buy new things or have more pocket money for fun. After paying out $3,500 for the monthly mortgage the family has hardly money left for buying groceries.

The children are having to adjust. Her 15 year old son covers three miles each day walking to and fro school. His parents cannot give him money for the bus and for lunch. Previously it was $7 per day but now they can barely scrape through $5. Thus Eric walks and uses the money to buy lunch.

The foreclosure crisis has affected about 1.95 million children across the country. They are referred to as the ‘silent sufferers’. The number is on the conservative side – in reality there are many more. The report First Focus has not counted the children of tenants who have been thrown out of foreclosed houses. The national child advocacy group released this report after the financial crisis made its impact. The effects on young mind can be much longer lasting than the crisis itself. The children lose their sense of security and face stress because of homelessness. A natural question like “where do you love?” becomes weighed down with heavy meaning.

In trying to break the impact a help group in Nassau County will hold a meeting on Hempstead High School. It will be first of many that will be held later. Those areas will be chosen that has seen concentration of foreclosures. The help will come from lawyers and even lenders. It will reach the doorsteps of those worst affected.

The Homeless Services note that nearly one third to one half of the people have never been homeless before. This was said by Karn Woodmansee of Homeless Services. Many bring their children with them. The older ones understand but are abnormally subdued because of this. The young ones over react because of the stress they cannot comprehend. Woodmansee said, “When parents are unraveling, the kids are going to be the recipients of that anxiety. It\’s kind of always living on the edge. They\’re already losing time and energy from schoolwork and they fall behind.”

The alternatives are grim. A family with six members are lucky to end up in a one bedroom apartment. The children have to change schools although many districts have been understanding and allowed the students to continue for another year. The kids end up paying the biggest price for it.”