What are the implications of foreclosure on a family and society?

Expert Answers

An illustration of the letter 'A' in a speech bubbles

Foreclosure can often mean homelessness for a family. Unless there are family or friends willing to take in the family, the family is left to live either in their vehicle or on the streets. This can be especially tough on children. Homeless populations experience higher crime rates than other groups and the family is placed at risk. It is also harder to get a job without a stable housing situation, as most places of work require a permanent address listed on the job application. This makes it harder for some victims of foreclosure to get back on their feet. A foreclosure also negatively affects one's credit rating; this can also make it difficult to find good places to rent.

Foreclosure can also lead to feelings of depression. After a foreclosure, rates of suicide and substance abuse increase. This also places more strain on the family and makes it more difficult for the family to find stable housing.

Socially, many foreclosures in an area lead to blighted communities as vacant houses are, at best, public eyesores and at worst, dangers to the city. Since no one owns them, the city cannot gain property taxes. Without a strong tax base, public schools and other services suffer. Children who are homeless due to foreclosure have a more difficult time succeeding in school due to family stress and a lack of food, rest, and safety. The child struggles in school and may be denied reaching his/her full potential.

Last Updated by eNotes Editorial on
Soaring plane image

We’ll help your grades soar

Start your 48-hour free trial and unlock all the summaries, Q&A, and analyses you need to get better grades now.

  • 30,000+ book summaries
  • 20% study tools discount
  • Ad-free content
  • PDF downloads
  • 300,000+ answers
  • 5-star customer support
Start your 48-Hour Free Trial