Foreclosures' financial strains take toll on kids

Eventually, Tracy and her children moved back to their city home and tried to sell the one in the country. Receiving no offers, Tracy cut the price from more than $660,000 to $580,000 in January. The country house, bought with a subprime adjustable-rate loan that now carries a $5,000 monthly payment, became too much for Tracy to afford. She is now facing the final stages of foreclosure.

Her secondary lender, First Magnus, still could seek repayment of what Tracy owes. That would likely require Tracy to try to sell the family's home in Neenah to cover the expenses. If Tracy files for bankruptcy-court protection, the Neenah home could be seized as an asset.

"I am trying to take responsibility for the situation, avoid hurting my children further and pursue the best possible outcome based on the circumstances," Tracy says. "I have a 15-year-old daughter, and I don't want her to be the kind of woman who walks away from mistakes.

"My kids have seen me get tearful and frustrated, and I tell them, 'This is a mistake we were drawn to with the belief it would make our lives better. I wish we would have understood it and asked more questions.'

"I tell all three of the kids, 'We need to focus on the positive, like our health, family and all of the good aspects of our life.' I don't want to consume their childhood and compromise their future with this adversity."

But Zoe understands what's happening, and it's affecting her.

"Before, I went on tons of trips and didn't worry about expenses," she says.

"Now, my mom cries a lot, and it bothers me. It's us three kids, and we can't do anything. We see her cry, and we worry. My mom couldn't afford a nanny, so now I watch the kids. We love our house, and I worry what my friends will think of me. They'll see me different."

Her 13-year-old brother, Quinn, bikes to Dairy Queen and plays football with his friends, trying like his older sister not to dwell on the situation, but he also says it feels as if life is on hold. He wants a dog, he says, but his mother has said they have to wait to find out what will happen with their home.

The younger daughter, Lyric, 11, says she's finding herself fretting about money and about her mother. "I don't like seeing my mom upset," she says. "We don't get to go on many trips, like my aunt's wedding. I worry. I ask Mom what's wrong. We just have to sacrifice."