In the current economy, many people are feeling the crunch. Lots of people bought houses five to ten years ago with special loans, feeling sure they would be able to afford the payments. Unfortunately, the changing economy and loss of job opportunities is costing many families their homes. Home owners fall further and further behind until they face foreclosure on their houses. As a result, many of these people end up homeless.
Most of the time, when we hear stories about foreclosure, we assume the home owners just find a new place to live. Unfortunately, it’s not that easy. Many end up living in their cars or on the street. It is basically impossible to buy another home with a foreclosure on your credit report. Even worse, most landlords won’t take the risk to let you rent property either. As your credit score is ruined with foreclosure, you are faced with seven years of terrible credit and no place to live.
For those who end up homeless, this is devastating. Many of them have children and those kids fall through the cracks as they stop attending school and receiving adequate health care. Homelessness drives many to alcoholism and drug abuse as they find a way to relieve the emotional pain that surrounds them.