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USA Today reports that homelessness has been on the rise ever since the wave of foreclosures began in 2007. According to a study released in April by the National Coalition for the Homeless, 76 percent of homeowners and renters displaced by foreclosures are moving in with relatives and friends, 54 percent are moving to emergency shelters, and approximately 40 percent are living on the streets. (Respondents were allowed to give multiple replies to the survey questions.)

Six cities reported increases in the number of homeless people in emergency shelters and transitional housing, and representatives from 10 cities said they have seen an increase in households with children seeking homeless services. Although several reasons were given for these elevated numbers, foreclosure was the primary cause cited.

The rate of new foreclosures was 0.99 percent in the first quarter of 2008, the highest rate of increase since 1979 when the record-keeping began, according to the Mortgage Bankers Association. Another record: 2.47 percent of all mortgages were in some stage of foreclosure in the first quarter of this year.

Cities with big jumps in foreclosures also saw big jumps in homelessness-including Detroit, Portland, Ore., and Salt Lake City. The Salvation Army reports that for the first time in memory, homeless services are being needed in areas where middle-class families live. Major George Hood, the Salvation Arm’s national community relations secretary, said, “Typically, if families lose their homes, unless they have relatives, they’re scrambling. We’re really seeing an uptick in homelessness right now. You have to rescue some from sleeping in vehicles.”

To read the full story in USA Today click here.

To read our other posts on this topic click here.

This information is from KnowledgePlex.

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