More sickening foreclosure news
A foreclosure sign at a house in Denver (April 4, 2010) Credit: AP
As if Washington needed another reason to do something about the foreclosure crisis, now comes evidence that it might be making people sick.
A new study by economists Janet Currie and Erdal Tekin covering Arizona, California, Florida and New Jersey -- all leading foreclosure states -- found that from 2005 to 2009, more foreclosures in a ZIP code meant more hospital visits, especially for stress-related ailments and those that might be prevented by timely health care.
An extra 100 foreclosures, the economists found, was associated with 7 percent more hospital visits for hypertension, 12 percent more for anxiety, and 39 percent more for attempted suicide, all among adults 20 to 49 years old. The researchers used statistical techniques to try to weed out other possible explanations for worsened health. While cause and effect can't be proved, it seems likely that the foreclosures made people ill.
And it's no wonder. Losing a home can worry anyone sick -- and a lot of Americans are in danger of losing their homes. About 2 million have already done so, and another 2 million are strong candidates. One in five homeowners with a mortgage owes more than his or her house is worth.
Given the government's huge role in the mortgage market via housing finance giants Fannie Mae and Freddie Mac, it should work harder to provide loan modifications to those who might benefit -- and to get Americans working again so home prices turn around.
