According to the report, which was funded by the California Endowment, a private foundation promoting health care, 1 in 4 Oakland property owners received a notice of default on their mortgage, signaling the start of foreclosure proceedings.
The survey found that residents who are going through foreclosure or recently lost their homes were more than twice as likely to say that their mental and physical health had worsened over the past two years than those not going through foreclosure. Those residents were also twice as likely to report stress, depression or anxiety over the past month.
Residents in the two Oakland neighborhoods reported increased crime levels, with vacant properties serving as magnets for illegal activity. Adding to the strain, foreclosures disrupted social connections as neighbors moved out, a problem that can be particularly difficult on children who may have to change schools.
“This kind of financial distress leads to intense levels of stress, which, in turn, makes it not at all surprising to find people who are suffering emotional and, in some cases, physical consequences,” said Paul Leonard, director of the California office of the Center for Responsible Lending, a consumer advocacy group.