Latino communities bear heavy burden in foreclosure crisis

The country’s rapidly-growing Latino community has been hit especially hard by the nation’s foreclosure crisis, and it’s taking a hefty toll on its long-term stability, according to a new study from the University of North Carolina at Chapel Hill. The report, based on interviews with Latino families who have already lost their homes to foreclosure, found that victims lost an average of $89,155, resulting in cutbacks in medical care and education expenses, as well as depression. More than half of families surveyed said their children had academic or behavioral problems in school and at home, and none had been offered a loan workout or modification, despite having reached out to their financial institutions. Between 2009 and 2012, 1.3 million Latino families will lose their homes to foreclosure, the report says. “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,” said Roberto Quercia, director of UNC-Chapel Hill’s Center for Community Capital. TRD