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The National Council of La Raza (NCLR), the largest national Hispanic civil rights and advocacy organization, and the University of North Carolina at Chapel Hill's Center for Community Capital have released[IMAGE]
""_The Foreclosure Generation: The Long-Term Impact of the Housing Crisis on Latino Children and Families_"":http://www.nclr.org/content/publications/detail/61725 â€" a study which uses interviews with Latino families who have suffered a foreclosure to shed light on the damage inflicted by the loss of their home. The publication of the study coincides with the one-year anniversary of President Obama's Homeowner Affordability and Stability Plan this week.
According to NCLR, the report is the first to provide a glimpse into the far-reaching impact that record-high foreclosures are likely to have on the millions of American families and children expected to lose their home in the coming years, and it calls for a bold response from federal policymakers.
""An estimated 1.3 million Latino families will lose their homes to foreclosure between 2009 and 2012,"" said Janet MurguÃÂa, NCLR president and CEO. ""This represents a shocking loss of wealth and a major blow to community stability. This study brings to light the human and social costs of foreclosure and the urgent need for stronger government intervention to help homeowners, including those who are unemployed.""
_The Foreclosure Generation_ documents the experiences of families forced out of their homes due to a foreclosure. Families interviewed generally had exhausted all available resources in an effort to keep their homes, were
[COLUMN_BREAK]unable to secure assistance from their mortgage servicer, and often relied on relatives and friends for shelter and assistance, NCLR explained. Marital discord, anxiety, depression, children's poor performance in school, financial loss, and strained relationships between parents and children were among the consequences reported.
Roberto Quercia, director of the Center for Community Capital at the University of North Carolina at Chapel Hill, said ""Our findings on the impact of home foreclosures on families are disturbing. Children in particular experience problems in school and are deeply affected by instability in the home. More research is needed to better understand the long-term impact of foreclosures on our communities and to find the best interventions to meet those needs.""
Among the key findings of the study are that job loss and jumps in mortgage payments are the most common triggers that lead to default and foreclosure. Families interviewed reported an average loss of $89,155 due to the foreclosure.
Despite having reached out for help to avoid their foreclosure, NCLR said none of the families interviewed were offered a sustainable forbearance, workout, or loan modification from their financial institutions.
_The Foreclosure Generation_ also offers policy recommendations to stabilize the housing and financial situations of families affected by foreclosure and reestablish homeownership as a wealth-building tool for Americans of modest means. In particular, the report points to the shortcomings of current federal efforts and calls on policymakers to take bold steps to stop the loss of wealth through home loss.
""To help the nation recover from the devastation caused by foreclosures, Americans need three things: relief from foreclosures, even if they are out of work; the opportunity for qualified families to purchase newly affordable homes; and stronger consumer protections and accountability standards to prevent future crisis,"" said MurguÃÂa.
Almost eight million homeowners in the U.S. are behind in their mortgage payments and an estimated 400,000 Latino families were expected to lose their homes to foreclosure in 2009 alone, NCLR reported.
