The Wrong Way to Deal with Foreclosure

I came across an article the other that I found very disturbing. It’s a piece, written by Nick Turse for TomDispatch.com, about some particularly extreme reactions to foreclosures by homeowners across the country. He searched through a variety of local news websites nationwide and found a whole lot of stories about people committing suicide in response to being foreclosed (and/or threatening others when the authorities came to evict them). Some of these folks just didn’t want to leave their homes, others were angry about being evicted, and still others were trying to help their survivors pay the bills by allowing them to cash in their life insurance policies.

I don’t know the rule, but I’m pretty sure insurance companies can and will void a life insurance policy if the insured commits suicide, although policies, regulations, and laws may vary from state to state. (Heath Ledger’s estate is apparently suing his life insurance company for not paying his daughter $10 million because the company claims that his death from a drug overdose this past January may have been a suicide.)

In any event, I’m certainly not advocating suicide as a means to solving a financial problem (just so we’re clear). I do recommend keeping an eye on loved ones or friends who may be in danger of losing their homes, though. If suicidal tendencies were easy to spot, there’d be fewer suicide attempts (or so I like to think), so be sure to listen with a keen ear when you talk with someone close to you who’s in a difficult position with their mortgage or some other financial situation. If you hear any comments that sound a little suicidal or self-destructive in any way, don’t just dismiss them as a joke or a throw-away line.

While we’re on the subject: How would you recommend coping with foreclosure? What would you do if you found yourself in danger of being evicted?

Tags: dealing with foreclosure, foreclosures

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