Can your neighborhood type predict your foreclosure risk?

On Behalf of | Nov 19, 2018 | Foreclosure

Most people in Connecticut will experience a financial emergency at least once in their lives. Whether a financial crisis leads to foreclosure can depend on a variety of factors, including a person’s other debts, income and even savings. Some researchers say that the type of neighborhood a person lives in could also affect one’s risk of losing a home to foreclosure.

The researchers from an out-of-state university looked at the housing diversity in 14 different metropolitan areas in the United States. They took into account not only the existing homes in a neighborhood, but also what the zoning ordinances allowed between 2005 and 2013. Their conclusion? Neighborhoods with more diverse housing options had fewer foreclosures.

When people are on the hunt for the perfect home, they are usually looking for more than just an ideal house — they are also interested in local schools, traffic and distance from their place of work. If the neighborhood that fits this bill only offers a single type of housing, a person might end up buying a home that he or she ultimately cannot afford. Housing-diverse neighborhoods that offer a mix of single-family homes, apartments, duplexes and more provide better opportunities for homeowners to find both the ideal area and a home within their budget.

This is not to say that all home foreclosure can be traced back to people buying beyond their means. Many Connecticut homeowners find themselves in this difficult situation after experiencing an unforeseeable financial crisis, such as a medical emergency or sudden job loss. Regardless of the circumstances leading up to this moment, homeowners who are unable to make their monthly mortgages may be able to head off foreclosure by taking prompt and timely action with the help of a savvy debt relief attorney.