Rise In Emotional Problems Triggered By Foreclosures

Washington, D.C. (AHN) - A host of emotional problems are being experienced by many American homeowners facing foreclosure proceedings. Mental health experts said it includes anxiety disorders, depression and addictive behavior expressed through alcoholism and gambling.

Worst case scenario include suicide, like what Oregon couple Raymond and Deanna Donaca did on Oct. 23 by opting to suffocate themselves to death from fumes emitted by their Cadilla Eldorado, rather than leave their three-level home for the past 20 years.

Richard Chaifetz, chief executive officer of ComPsych, which counsels homeowners, told USA Today, "People tend to catastrophize, and that leads to depression. Suicide rates go up. We see an increase in drinking, outbursts at work, violence toward kids. Before, their houses were like ATMs" which went up in value.

But with the mortgage crisis causing an unprecedented rise in foreclosure proceedings, "Now, they (homeowners) feel trapped like a rat in a corner," Chaifetz added.

Chaifetz said financial worries toppedthe list of concerns their clients have raised, registering a 20 percent increase. The number of mortgage-related counseling cases have gone up by a hundred percent and threatens to be the number one issue triggered by the housing crisis.

Latest data from RealtyTrac said foreclosure filings in April grew by 65 percent in April compared to 2007 levels. As more American homeowners fall behind on their mortgages and face other financial woes, a large number use their credit cards to purchase basic goods, while reducing expenses on retail, travel and entertainment.

Liam McGee, president of Bank of America Corporation's consumer and small business division, told Bloomberg BA debit and credit card holders increased by 13 percent for the first quarter of 2008 their purchases of fuel, food and utilities, but reduced non-necessities by 0.5 percent.