- Unemployment tops 10 percent again _ and it’s tougher off the job than a generation ago, By Jeannine Aversa (AP), November 7, 2009, Chicago Tribune: “It hurts more to be unemployed now than the last time the jobless rate hit 10 percent. Americans have more than triple the debt they had in 1982, and less than half the savings. They spend 10 weeks longer off the job. And a bigger share of them have no health insurance, leaving them one medical emergency away from financial ruin. For these reasons, the unemployed are more vulnerable today to foreclosure and bankruptcy than they were a generation ago…”
- Debt levels leave low paid at risk of homelessness, By Nick Mathiason, November 11, 2009, The Guardian: “Britain’s 14.3 million low earners are in danger of being sucked into a whirlpool of poverty as official figures are expected to show today that the number of unemployed has passed through 2.5 million for the first time in 15 years. Research by the insurance tycoon Clive Cowdery’s thinktank, Resolution Foundation, shows low-income households – with an average of £15,800 at their disposal – are walking an increasingly precarious financial tightrope. It has found that 24% of low-wage households spend more than a quarter of their monthly income on debt – twice the number from three years ago. The study shows nearly a third of low-income households have high loan-to-value mortgages and are in negative equity, making them vulnerable to homelessness if they lose their job…”
Tag: Foreclosure
Home Foreclosures and Homelessness
Foreclosures force ex-homeowners to turn to shelters, By Peter S. Goodman, October 18, 2009, New York Times: “The first night after she surrendered her house to foreclosure, Sheri West endured the darkness in her Hyundai sedan. She parked in her old driveway, with her flower-print dresses and hats piled in boxes on the back seat, and three cherished houseplants on the floor. She used her backyard as a restroom. The second night, she stayed with a friend, and so it continued for more than a year: Ms. West – mother of three grown children, grandmother to six and great-grandmother to one – passed months on the couches of friends and relatives, and in the front seat of her car. But this fall, she exhausted all options. She had once owned and overseen a group home for homeless people. Now, she succumbed to that status herself, checking in to a shelter…”
Unemployment and Home Foreclosures
Unemployment spike compounds foreclosure crisis, By Renae Merle, August 18, 2009, Washington Post: “The country’s growing unemployment is overtaking subprime mortgages as the main driver of foreclosures, according to bankers and economists, threatening to send even higher the number of borrowers who will lose their homes and making the foreclosure crisis far more complicated to unwind. Economists estimate that 1.8 million borrowers will lose their homes this year, up from 1.4 million last year, according to Moody’s Economy.com. And the government, which has already committed billions of dollars to foreclosure-prevention efforts, has found it far more difficult to help people who have lost their paychecks than those whose mortgage payments became unaffordable because of an interest-rate increase…”