Desperate times, desperate people

Home arson: "Million-dollar boats are easy to scuttle," Quiggle said. Homes, however, are not.

Yet more people seem to be trying to get insurance money by torching their houses, Quiggle said.

In Indiana, a couple said they had awakened to flames in the middle of the night and escaped, with the husband running back in to rescue the pets. The house was two days from foreclosure, an easy red flag for investigators, and the couple later admitted the husband hadn't made payments in 20 months, unbeknown to his wife.

In Houston, a man removed his belongings and tried to stage a hate crime. In Florida, a woman tried to set up a fake rape story before a fire, authorities say. In California, neighbors' homes were damaged by a blaze. All were on the eve of foreclosure.

"These are desperate people who are not thinking clearly," Quiggle said. "They feel they are backed into a corner and have no way out.

"Many of these homeowners don't realize that they're up against fraud investigators who have seen these things before. It's not logical; it's not well-thought-through."

Suicide and murder: In the most troubling cases, homeowners kill themselves. Sometimes they kill other people before lighting a match or taking their own lives.

In Florida, a man killed his wife and dog before torching their house and killing himself. In Minnesota, a man died of smoke inhalation in a fire he had started. Both homes were facing foreclosure.

In a case highlighted by Congress, a 90-year-old Ohio widow shot herself in the chest as deputies were en route to evict her. She is recovering and has said it was "a crazy thing to do."

According to a recent survey by the American Psychological Association, money and the economy are now the leading causes of stress.

When people are exposed to severe, chronic stress with no end in sight, "the average person is going to have difficulty," said Nancy Molitor, a clinical psychologist and an association spokeswoman.

The most horrific case of a financially triggered crime occurred in October, when an unemployed financial manager killed five family members -- his wife, mother-in-law and three sons -- and then shot himself at their Los Angeles home.

Karthik Rajaram, 45, left a note for police in which he cited economic troubles and said he'd considered suicide alone but opted for taking his family as the honorable thing to do.

"I'm not sure that they lost all their money, but they were going to be humiliated in his eyes," said Curry, the psychologist.

Financial anxiety and shame

James D. Scurlock, the writer and director of "Maxed Out," a film and book about credit card abuse, said he didn't expect to encounter such depths of personal despair during his research.

"Originally I conceived 'Maxed Out' as being kind of romp through consumer culture and consumerism," he said. "When I started interviewing people who had really been victims of predatory lending or had gotten in so deep they couldn't get out, I was shocked by what an emotional issue it was, by what a defining issue it was."

Each of the dozens of debt-saddled subjects Scurlock interviewed said they had experienced suicidal thoughts.

"Everyone I met blamed themselves, and no one expected to be bailed out," he said. "These collectors had become such a huge part of their lives that they lost their perspective. They really started to believe that this would never end."

Until he saw the police at the house, John Balderrama thought his family and his finances were fine.

Balderrama believes his wife felt shame, although she hid it well. Before her suicide, she had revealed their true financial picture to no one.

"I think she felt like she had failed me," he said. "She panicked. She just didn't know which way to turn at the time. When someone's telling you you've got to be out of your house at 5 o'clock because they're going to put it up for auction, what do you expect?"

But her response was not the answer, said Balderrama, who is trying to establish a fund in her name for struggling homeowners.

"There are always ways to make it work," he said. "You don't want to go through what I'm going through."

Keep some perspective

Psychologists advise:

• Beware if loved ones seem lethargic or withdrawn, if they make comments about being worthless or if they start giving away possessions. If they seem anxious about bills, offer to get them help, even if it's an uncomfortable conversation.

• If you're feeling anxious, talk to people. Private burdens weigh more than shared ones. "If you're trying to go it alone, you're putting yourself at tremendous risk psychologically," psychologist Molitor said.

• Discuss practical options with other people.

• Stick to routines, including regular sleep and eating patterns.

• Know that resources are available at all hours. In a crisis, people can call the National Suicide Prevention Lifeline at 1-800-273-TALK (8255); Homeowner's HOPE, a national hot line for foreclosures, at 1-888-995-HOPE (4673); or, in many towns, dial 211 to be routed to a help center.

Additional help is available from the National Foundation for Credit Counseling via its Web site or at 1-866-481-6322, a toll-free number. The foundation can provide advice and debt counseling, and make referrals to other resources.

Published Oct. 29, 2008

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