FORECLOSURE HEALTH CRISIS: DEPRESSION, DIABETES, HIGH BLOOD PRESSURE AND HEART FAILURE

MOST POPULAR ARTICLES

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE

EDITOR’S COMMENT: The bad news is that foreclosures and the ailing economy drawn down by the housing crisis is literally killing us. The mental health professional community is stepping up to help and we are heavily involved contributing resources and data from the livinglies blog and the American Homeowners Cooperative, which is already into discussions with health care providers and mental health professionals to provide crisis interventions to prevent suicide and assistance to those who are unable to cope with the stress of that next letter in the mail, the next knock on the door, the next phone call.

I always remind people that this situation is not their fault, but they keep thinking it is their fault anyway. They didn’t cook up this scheme and they didn’t screw up the financial system — that was the banks whose greed went unchecked by any regulation or morality. And just because you didn’t make a payment doesn’t mean that you are a deadbeat — your non-payment was built-in to the system that produced this mess. The banks made more money when you defaulted than if you had paid. Read this blog and you’ll understand the MATH.

Foreclosures Are Killing Us

By CRAIG E. POLLACK and JULIA F. LYNCH

AFTER slowing down in the first half of the year, the rate of homes entering foreclosure is rising again. First-time default notices were served on 78,000 homes in August, a 33 percent increase from July. A $1 billion federal program to help jobless and underemployed homeowners ended Friday. Foreclosure notices were filed against a record 2.9 million properties last year, and an additional 1.2 million in the first half of this year.

Foreclosure is not just a metaphorical epidemic, but a bona fide public health crisis. When breadwinners become ill, they miss work, lose their jobs, face daunting medical bills — and have trouble making mortgage payments as a result.

But that is only part of the story. A growing body of research shows that foreclosure itself harms the health of families and communities. In our 2008 survey of 250 people undergoing foreclosure in the Philadelphia area, 32 percent reported missing doctor’s appointments and 48 percent said they let prescriptions go unfilled, significantly higher rates than others in their community. A paper released last month by the National Bureau of Economic Research found that people living in high-foreclosure areas in New Jersey, Arizona, California and Florida were significantly more likely than those in less hard-hit neighborhoods to be hospitalized for conditions like diabetes, high blood pressure and heart failure.

More than one-third of homeowners in our study had symptoms of major depression. The N.B.E.R. study found significantly more suicide attempts in high-foreclosure neighborhoods. For every 100 foreclosures, it found a 12 percent increase in anxiety-related emergency-room visits and hospitalizations by adults under 50. Losing a home disrupts social ties to neighbors, schools, jobs and health care providers — ties that under better circumstances promote good health. Neighborhoods suffer, not just homeowners.

Most programs to stem the tide of foreclosures rely on mortgage counselors at nonprofit groups supported by federal grants, who work closely with homeowners and banks to try to find a financial resolution.

These counselors have become, of necessity, crisis counselors — in a national survey of 395 mortgage counselors we conducted in January, 37 percent said they had worked with at least one homeowner in the past month who was considering suicide — but they need to be trained to quickly and efficiently screen for illnesses like depression. In fact, health care should be part of a comprehensive approach to foreclosure prevention; for example, mental health caseworkers should be embedded in mortgage counseling agencies.

Screening and treatment may actually help some families keep their homes. Studies of unemployed people have shown that treating depression can improve the chances of landing a new job. Such treatment might also help homeowners undertake the daunting documentation and financial planning that foreclosure prevention programs demand.

In a time of fiscal strain and rising need, where will the money come from? For one thing, the settlement negotiations with the financial services industry over mortgage fraud and abuse should include money for health care. Millions of Americans are locked into mortgages they can’t afford. If we can’t help them stay in their homes, the least we can do is help them stay alive.

Craig E. Pollack is an assistant professor of internal medicine at Johns Hopkins. Julia F. Lynch is an associate professor of political science at the University of Pennsylvania.

26 Responses

  1. To M. Solimon
    Re: breach of fiduciary duty in lender/borrower relations
    Please be advised that the law of lender liability specifically applied in the Farm Crisis involving Federal Land Bank and PCA foreclosures because the borrowers were required to own stock in those sham entities. There is a definition in lender liability law that if a lender becomes involved with advising the borrower on business decisions, which the PCA did, that course of conduct can be held to create a fiduciary duty as if from advisor to client.
    Re: Napalm Metaphor- the borrower who compared losing her home to being napalmed is speaking metaphorically and not literally. She feels terrorized like so many other foreclosure crime victims. As any battered person will tell you, the physical abuse is not as devastating as psychological abuse. The banks who framed this crisis in order to take hard assets for fake loans are well aware of human vulnerabilities and use them to their advantage. As the farmers said in the 1980s about the foreclosure crisis, historically known as the “Farm Crisis,” IT IS THE WAR OF THE LIVING AGAINST THE DEAD. (Corporations are not alive.) In this era of Citizens’ United, the axiom is more properly, IT IS THE WAR OF THE MORTALS AGAINST THE IMMORTALS. (Corporations have perpetual existence until the people demand the revocation of the corporate charters for fraud. Upon revocation of the charter, the corporation is dead.)

  2. Napalmed –

    Attorney Wendy Alison Nora~Thank you….I said to lose one’s home is like being napalmed/D.U.’d…

    Napalm (trade name) is a powder. Mixed with gasoline, it is a tactical weapon used to remove vegetative cover and instill fear. Fire bomb fuel gel mixture, the new nomenclature for napalm, is a mixture of fuel and gelling solution that are combined to produce a thickened mixture. The fuel gel mixture is stringy and sticky, and readily adheres to most surfaces. The fuel gelling system consists of a fuel gelling unit, drums of gelling solution, and aviation gas, mogas, JP-4, or JP-5 fuels. Incendiary munitions can kill or wound by immolation and by asphyxiation. Third degree burns are typically not painful at the time, since only the cutaneous (skin) nerves respond to heat and full-thickness (third-degree) burns kill the nerves. Severe second-degree burns such as likely to be suffered by someone hit with a small splash of napalm are the severely painful ones, the ones likely to be survived, and likely to produce hideous scars called keloids [which also bring about motor disturbances]. South Vietnamese and US planes often dropped Napalm on the enemy and even a sympathetic communist village or two if located near a battle with the North Vietnamese.

    Many civilians including children and babies were badly injured.

    One viewer wrote in “…my uncle use to tell me when they dropped napalm he could hear the Viet Cong screaming while they were on fire. “He said it was so chilling that even the toughest men had to put their fingers in their ears because the smell of burning flesh and screams were so horrible” …this shxt , its so fuxkxed up. I wish this world could live in peace.

    (By Unknown)

    This site does a good job of watching my comments and censoring my attack on views of one or more who “Don’t seem to Get it”. Its your site and fine – do it. I do respect everything Niel represents here with occasional adverse opinions. .

    But how can you let a Napalm comparison to moving out of ones home survive. How ….

    M.Soliman

  3. Come back to reality Good father nice guy , great neighbor…..Go play with your kids pal – the lender has no duty of care or fiduciary obligation to provided a beneficial resolution to a defaulted borrower.

    *PLEASE** This is not my perspective but the reality we shared in the warehousing and servicing sector. . .It is also a reason I got out.

    Hearing an African American crying one morning “give a brother a break…I’m losing my family over this…give a brother a break!

    Its not a color thing. We are all God’s children and brother and sister amongst us regardless of profession.

    Or, How about buying a loan from a bank for borrower who was an older widow who was 12 years in arrears for a minuscule balance. The seller was a Bank (President was a past bank manger i worked with at Bel Air Saving and Loan. ) . He clearly stated that he did not want the stigma of throwing the proverbial “ole Lady out”. Yet the regulators said enough was enough.

    Her fate was sealed as i got confirmation of reselling the file “in foreclosure” as a loan that was only down 90 days and under a recently filed NOD.

    I remember the transaction netted us $50,000 and that was good news as I was traveling by Limo to that nights Lakers playoff game. After all I had the Holyfield – Ruiz ringside tickets waiting in Vegas for me the next night and etc etc.

    As for the first encounter ….He was in fact the beginning of the end for me – Crying out give me a break – I did not want this life anymore.

    As for the senior citizen down 12 years. How was it I was able to sell the loan down only 90 days and transfer the asset with out ever talking to the woman …?

    Don’t guess – its happening to you !
    (Stop him – someone Stop him . . . . Anonymous…Crabby….lieN someone Pleaseeeeee!) Remember, the lender has no duty of care or fiduciary obligation to provided a beneficial resolution to a defaulted borrowers condition.

    M.Soliman
    expert.witness@live.com

    “Stamp out RESPA and TILA Audits! . . .and attorneys who make consumers pay for them . “

  4. Attorney Wendy Alison Nora~Thank you….I said to lose one’s home is like being napalmed/D.U.’d…I have no thing left,no thing but a sense of terror for what comes next….winter,possible eviction,no work no ca$h fun times yah…long story,going to walk the dog now.Stay Strong.I am attending Occupy Albany if I can get there…
    It’s NOT”their” plan -it…

  5. We are all being “dumbed down”. The health problems are not only caused by getting foreclosed on but from being STUPID and not putting up a fight. But people are being made more “stupid” from the “chemtrails” that are being laid down every day in our atmosphere. Maybe being stupid is from the aluminum, barium and other chemicals that cause mental confusion and many disease symptoms due to the heavy metal toxins in your body. or the flouride poison put in the water. or the lithium put in bottled water
    go google chemtrails, HAARP, flouride in water, “liquid Gold” aquafir under Texas bought by T Boone Pickens. Come on people, get smart! THINK.

  6. And, children — our future — also affected. Talk about “moral hazard.”

    Mr. “Hank” Paulson should have gotten on bended knees (to Congress) to beg for help for homeowner victims — not to bailout the banks. Cannot hide the truth forever, Mr. Paulson/Goldman Sachs. Eventually all surfaces.

  7. Marie,

    I don’t know much about Alabama and you may very well be right.

    I am optimistic by nature, though. So, when I know that one case was favorable to a homeowner in the state where I live and made history, I’ll want to focus on that one and put all my energy into finding out why it was decided the way it was rather than start thinking about a thousand of “Maybe but…”

    Remember: long, tough battle but it will be won one case at a time. Why not mine? Why not Dory Ann’s? Especially if she is already paying for an attorney. We’re all on the same side. We need to encourage each others with good results. We need to keep each other’s hope alive.

    I hope I don’t sound like a shill… (That one really cracked me up!)

  8. During the Farm Crisis of the 1980s, I brought counterclaims for intentional infliction of emotional harm in connection with breach of fiduciary duty claims. Many of my current clients are suffering from what appears to be post-traumatic stress disorder. For anyone who doubts that the diagnostic criteria for PTSD can be met here, this is a life-threatening situation: the loss of home and community, no less than the experience of war. I have one piece of advice as a lay person. Please, please check out the effects of anti-depressant medication which is frequently offered to those suffering from “anxiety and depression.” The medications themselves can cause anxiety and depression, along with manifestations of PTSD and are very hard to stop taking, if taken for a prolonged period of time. Anti-depressant discontinuation syndrome is a serious condition, as is serotonin syndrome which can occur from taking more than one serotonergic agent at a time. Google Dr. Ann Blake Tracy and read about the lack of scientific evidence to support “low serotonin” as a cause of depression and the horrific effects of increasing and decreasing serotonin through prescription drugs, which include suicide, homicide and psychosis. We need to stay clear-headed, no matter how painful these circumstances are. We are more than our homes, our communities and our justice system. We are each precious human souls who are stronger than lies and fraud. United we stand.
    Support Occupy Wall Street and go to your nearest protest site if you can. NYC, Tampa, LA, St. Louis, Minneapolis, Seattle, etc. One of my favorite slogans from the protests: We are too big to fail!

  9. for the “newbies”:

    ANONYMOUS, on August 3, 2011 at 7:34 pm said:

    johngault,

    You need to get head out of the securitization process. As documented — we know
    the process was —- hmmm— fraudulent.
    Securitiztion can be for any cash flows — but the security investors are NEVER
    the creditor. In the case of subprime/alt-a/jumbo securitization — there were no
    mortgage liens — the cash flow pass-through was only for pass-through of cash
    payments to collection rights. No mortgage lien – not mortgage — no pass-through
    of collection rights itself. Transfer of servicing rights only.
    The “investors” were the debt buyers that purchased the collection rights —
    period. The security investors were duped to believing that the cash
    pass-through was to valid mortgage liens. But, these security investors never
    were the lender, never were the creditor, and never were the mortgagee — because
    there was never any valid mortgages!!!!! And, security investors are NEVER the
    creditor.
    CDOs??? nothing more than derivatives from the false assets that the false
    securitizations were based upon to begin with!!!
    In your mind — Quote — “In my scenario, there is a loan.” Even if that is
    possible — it is NOT a mortgage. — no lien. And, when presented to borrower as a
    mortgage — when it was not a mortgage — which is was not — then the “loan” is
    false. But, more important, the so-called loan is unsecured!!! Thus, even if the
    “loan” was somehow valid — which it was not — it can — and should be —discharged
    in BK.
    You are still on the kick that these fraudulent loans were somehow valid MBS
    security investors know they were not. How can the borrowers be held accountable
    to fraudulent loans?
    Time to go after the the perpetrators — the “investors” — the debt buyers who
    purchased collection rights — falsely procured as “mortgage” refinances. And,
    they try to portray these collection rights as valid mortgages!!! Can never be.
    Mortgage title??? Long gone.
    Big difference between security investors and “investors.” But, no one wants to
    address this. This is the crux of the problem. And, as far as I am concerned —
    these “investors” will never come forward — would show criminality if they did.
    Why criminal??? Insurance fraud.- always criminal.
    So — just have to keep plugging away to show that the so-called “Trusts” were
    bogus — and transfer of any “mortgage/loan” — was bogus. Follow the path of the
    refinance proceeds. There are none!!!!!!
    We are winning. Tide is turning.

    ANONYMOUS, on August 3, 2011 at 7:03 pm said:

    Gwen Caranchini,

    I do not need to know the “processes” — subprime/alt-a/jumbo refinances (as
    nearly 100% were refinances) — were and are nothing more than a transfer of
    servicing rights to false collection rights. And, jumbo new purchases fit in the
    same category.
    Sorry — Gwen — I stand by what I state.
    This does not preclude QT challenge — all for it — just want most to understand
    — we are not challenging mortgage title — it never existed in the first place —
    we are challenging ANY title based on fraudulent loan (collection rights)
    assumption – and fraudulent mortgage title origination – to begin with.
    All is NOT as THEY would like it to appear to be. Far from it. If you them a
    “mortgage” — when it is not a mortgage — they well try to find some way to hold
    accountable —-this is wrong – and it is fraud. Just because it looks like a
    “duck” — does not mean it is a “duck” — no matter how it “quacks.”
    Unsecured — name of the game. .

  10. Enraged

    There are several recent circuit court cases in Alabama as well that deny standing to challenge securitization.

  11. Dory Ann,

    If I am not mistaking, Alabama was the firt state where a judge actually and openly questioned securitization. I don’t know who your attorney is but you might want to give him this case…

    http://www.dailyfinance.com/2011/04/01/court-busted-securitization-prevents-foreclosure/

  12. We all need to live by “I don’t get indigestion , I give it!” ,, I’m as broken as Paul N Atlanta ,, I’m unemployable in my chosen profession(s) because of medical bills that made me a “security risk” due to a bad FICO … I’m making 1/4 to 1/3rd of what I used to … yet I’m living well in a nice house with all my extended family while the banksters make excuses why they can’t produce documents … and I’ve been poking them pretty hard helping others out contesting 16 different sales on “standing” grounds no less and forcing a stop to sales in my area while the courts retooled for online sales (to give themselves the fig leaf of automated “rules” that better control the auctions) …

    There is no magic bullet ,, we all need to just do what we can when we can and help each other … I sincerely believe this economy is going over a cliff soon and the banks will be halted by government decree … I just hope we get real reform out of it and not martial law.

  13. @ Dory Ann, you wrote:

    “They’re also not going after BofA over the fact that neither they nor Freddie Mac (purported Lender) has the original note to the house.”

    I’m not an attorney and this isn’t legal advice, but….have you thought about getting new attorneys? The ones you have would appear to be uhm…in need of repair?

  14. I can relate to this story, and the irony in it’s posting today. I just got back from my doctors office, where I presented with symptoms of both anxiety and depression. Got put on Lexapro and Atavan. Only been fighting my foreclosure for 2 years and 5 months. Haven’t gone to trial yet because attorneys are dragging ass, but are more than happy to take my money every month. They are also not even going to bother to try to fight the securitization of my loan because in Alabama there’s no “good case law” for them to be able to do it. They’re also not going after BofA over the fact that neither they nor Freddie Mac (purported Lender) has the original note to the house.
    Give me one good reason to not be depressed….oh wait, I have it…eventually these scumbags will pay! Until that day comes, Bank of America isn’t getting one damn dime from me! Not until they can prove who I owe the debt to exactly…and best of luck with that!

  15. When this is all over which will probably take another 10 years, many people will have suffered and died from this scam. I wonder how long it will take our F^&*ked -up government to see the light. Our Constitution is in tatters. Read what Germany has to say about this BS. They went through it already and wound up with Hitler. Take a very close look. It is all there to see and learn from. Those that fail to learn from history are doomed to repeat it.
    – Winston Churchill

  16. All kinds of good news about “Occupy Wall Street”. It’s growing, growing, growing…

    http://www.alternet.org/newsandviews/?akid=7651.318294.UXvjSj&id=675165&rd=1&t=6

  17. Occupy Arizona

    Strength & Honor to all !

  18. So sorry about the double post!!!

  19. Neil: Healthcare issues are just the tip of the iceberg. The rapacious criminal conduct of the banks destroys health, wrecks families, and worsens the outlook for children who are the most innocent. What is it like for a child to watch his family being crushed by nameless executives who earn million dollar bonuses? What is the prognosis for that child’s mental health?

    But be assured that the family health metrics, the intact health insurance policies, the fully funded 401Ks, the trust-fund paid private school tuition bills, and the general financial outlook for the executives who ran the big banks takes a material uptick when they are relieved of their duties. In fact, they get a huge golden-goodbye payment and don’t even have to go into work after that. In China, they’d have taken the CEO of CountryWide out and shot him. Here, with the meritocratic social Darwinism so dear to the Republican party, we coddle the executives who court disaster with our hard-saved money. The criminals are treated as heroes.

    NB: See “Becoming Compassionately Numb” from this last Sunday’s New York Times. http://prin.tt/oF24cH

  20. Wow, I was so surprised to see this. I have been foreclosed on and am fighting it. However the anxiety that this has caused me is unbelievable. I’ve been blaming myself… Why didn’t I get a better education? Why didn’t I go to work for the government years ago when they paid half what the private sector did? Why aren’t I mature enough at 56 to deal with the process servers, certified mailings, letters from FNMA attorneys, the phone calls and the incredible amount of people running all over my property doing whatever they want because nobody really owns the place any more?

    Thanks for writing this article.

  21. Well said Zoe. Everyone needs to take a deep breath and learn to channel those feelings of despair and hopelessness into determination and ultimately exhilaration at defeating TPTB and their TBTF ideology.

    There are plenty more of us, and we CAN defeat them by banding together. One by one we’ll break the death grip which has strangled this country, this planet, and remove from power those that stifle the People.

    We are the 99%!

  22. I HAVE BEEN HARPING ON THIS FOR A YEAR ON THIS BLOG.

    When there is complete powerlessness and hopelessness you fall apart…I know…I was there.

    People need to know they have POWER over INJUSTICE.
    That is what the protests are about.

    No one is paying for the crimes committed by the mortgage industry and Wall Street/Banks/government…they are simply hoarding the money they stole from us…waiting to see what happens…to see how many people give up and/or kill themselves…

    DEMAND PROOF of”secured creditor”.

    DEMAND PROOF of a LEDGER/BALANCE SHEET showing your payments are going to a verifiable “mortgage”…not just a DEBT COLLECTOR.

    SEND A CEASE AND DESIST/DISPUTE OF DEBT LETTER TO THE DEBT COLLECTOR AND THE FORECLOSURE MILL…and anybody else you can think of…

    ONLY A SECURED CREDITOR CAN TAKE YOUR HOUSE.

    NO funding…NO mortgages…EMPTY trusts…NO “MORTGAGE-BACKED” securities…only receivables were securitized…

    CHECK IT OUT:

    http://www.securitization.net/international/europe/France/Gide/Marc_Kergommeaux051501.asp

    Securitizing Corporate Receivables:

    An Attractive Way To Finance Your Business
    May 2001
    By: Gilles Saint Marc

    “Definition of securitization of receivables:

    The securitization of receivables consists in the sale of a pool of receivables to a dedicated vehicle that finances this purchase by issuing securities on the market. Repayment of principal and payment of interest due under these securities are made with the cash flow
    generated by the assigned receivables.
    The assets of the dedicated vehicle consist exclusively in the pool of receivables purchased under the securitization transaction (and the cash flow generated by the assigned receivables) and the liabilities, in the securities issued on the market.
    The word “securitization” is used to describe this transformation of receivables into securities, the securities issued by the dedicated vehicle representing the assigned receivables…”

  23. Paul N Atlanta, you are not a deadbeat. Anyone who has been through all of this and still wants to help others get through it is a standup person. I cringe when I think of those just beginning their journey into Foreclosure Land; they surely need the experienced ones to help them.

    You, like many who come to Neil’s site, might be almost “beat dead,” but you are not a deadbeat.

  24. I HAVE BEEN HARPING ON THIS FOR A YEAR ON THIS BLOG.

    When there is complete powerlessness and hopelessness you fall apart…I know…I was there.

    People need to know they have POWER over INJUSTICE.

    That is what the protests are about.

    No one is paying for the crimes committed by the mortgage industry and Wall Street/Banks/government…they are simply hoarding the money they stole from us…waiting to see what happens…to see how many people give up and/or kill themselves…

    DEMAND PROOF of”secured creditor”.

    DEMAND PROOF of a LEDGER/BALANCE SHEET showing your payments are going to a verifiable “mortgage”…not just a DEBT COLLECTOR.

    SEND A CEASE AND DESIST/DISPUTE OF DEBT LETTER TO THE DEBT COLLECTOR AND THE FORECLOSURE MILL…and anybody else you can think of…

    ONLY A SECURED CREDITOR CAN TAKE YOUR HOUSE.

    NO funding…NO mortgages…EMPTY trusts…NO “MORTGAGE-BACKED” securities…only receivables were securitized…

    CHECK IT OUT:

    http://www.securitization.net/international/europe/France/Gide/Marc_Kergommeaux051501.asp

    Securitizing Corporate Receivables:
    An Attractive Way To Finance Your Business

    May 2001

    By: Gilles Saint Marc (email: saintmarc@gide.fr) & Xavier de Kergommeaux (email: kergommeaux@gide.fr) Gide Loyrette Nouel (Paris)

    “Definition of securitization of receivables:

    The securitization of receivables consists in the sale of a pool of receivables to a dedicated vehicle that finances this purchase by issuing securities on the market. Repayment of principal and payment of interest due under these securities are made with the cash flow generated by the assigned receivables.

    The assets of the dedicated vehicle consist exclusively in the pool of receivables purchased under the securitization transaction (and the cash flow generated by the assigned receivables) and the liabilities, in the securities issued on the market.
    The word “securitization” is used to describe this transformation of receivables into securities, the securities issued by the dedicated vehicle representing the assigned receivables…”

  25. Keep your heads up folks. Illegal foreclosures can cause all kinds of destruction, they already have! It is rare for the medical community to wade into massive social upheaval, but they know the environmental causes of bad health, and they are enlightened enough to see “who” is causing them.

  26. What a tragedy, father to 3, divorced by a greedy Xwife in July 2006, disabled from a three year need of a hip-replacement performed on Aug 02/2011 and chapter 7, “then free at last”, so we are all in this together and I know someone out there has it worse. I will spend the rest of my human resource’s helping others who are coming into this.
    If I can help contact me at “the truthexposed101@gmail.com

    Atlanta, Ga. been 28 months w/o a penny paid other than lawyers and utilities, I am a deadbeat, but they pushed me over the cliff, WITH A ALMOST PERFECT CREDIT HISTORY 798 fico score in 2009 down to negative -798 average how impressing huh……….
    BUCK THE FANGSTER’S@GMAIL.COM

Leave a Reply

%d bloggers like this: