1 Do Children Lose More than a Home? The Effects of Foreclosure on Children’s Education Outcomes Submitted by:

Statement of the Research Problem. The recent housing crisis has produced profound changes in the economic conditions of families and communities across the nation. Average home values have dropped dramatically since 2005, stripping families of home equity. Many families have been unable to sustain high mortgage payments, especially if their home is worth less than their mortgage. As a result, nationwide foreclosure rates have skyrocketed by 225 percent since 2006; currently, 1 in 33 homeowners faces foreclosure (RealtyTrac, 2009). While the housing crisis damages families through the loss of wealth and/or the loss of a stable home through either direct foreclosure or eviction from foreclosed rental properties, there are likely far broader effects for school aged children in particular. Foreclosure on a family’s home or eviction from that home as a result of foreclosure introduces significant uncertainty to a child’s life (Roy, Maynard, and Weiss, 2008); foreclosure may force a neighborhood move or school change, disrupting social ties and requiring children to adapt to new environments. Youth displaced due to direct foreclosure are not only more exposed to the adverse effects of mobility, but also experience changes in the physical home and community settings. These can include changes in neighborhood and peer composition, as well as changes in community amenities suc