The rising foreclosures sweeping the country don’t just affect personal finances. They also take an emotional toll on homeowners. Money issues can be among the most difficult, and stress about money can spill over into other areas of life. USA Today reports on on some of the issues surrounding foreclosures:

Crisis hotlines are reporting a surge in calls from frantic homeowners. The American Psychological Association (APA) and other mental-health groups are publishing tips on how to handle the emotional stress triggered by the real estate meltdown. Psychologists say they’re seeing more drinking, domestic violence and marital problems linked to mortgage concerns — as well as children trying to cope with extreme anxiety when their families are forced to move.

“They’re depressed, anxious. It’s affected marriages, relationships,” says Richard Chaifetz, CEO of ComPsych, a Chicago-based employee-assistance firm that is counseling homeowners over mortgage fears. “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,” as they rose in value. “Now, they feel trapped like a rat in a corner.”

This is an interesting side effect. Marriage counselors have long pointed out that money problems are a major cause of divorce. And money problems can cause large amounts of stress. And a foreclosure is one big money problem. It’s not surprising that all of these foreclosures seem to be leading up to a national emotional health crisis.

Dealing with foreclosure can be tricky, but it is possible. However, it might be necessary for those dealing with the emotional stress of foreclosure to get some sort of counseling — marriage counseling or treatment for depression or anxiety — in addition to financial counseling.

Tags: foreclosures, mortgage loan blog, home mortgage loan, personal finances,
subprime mortgage, financial counseling, mortgage lenders

Tags: credit crisis, home mortgage loan, mortgage lenders, mortgage loan blog, stock market, subprime losses, US recession