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Want to avoid home foreclosure? Look in housing-diverse areas

On Behalf of | Nov 22, 2018 | Firm News, Home Foreclosure

Losing a home to foreclosure is a traumatizing event that often feels unavoidable. Now, some experts believe there could be a way to minimize the risk of such an occurrence. Florida homeowners who bought houses in neighborhoods with a greater diversity of housing types may be less likely to face home foreclosure than those who bought in more homogenous areas.

Researchers from an out-of-state university recently published the findings of their study, in which they examined structural factors in neighborhoods across 14 different metropolitan areas in the United States. They were curious to see if housing types played a role in foreclosure rates. What they found was that neighborhoods with diverse housing options were more stable than neighborhoods with higher-than-average incomes — the opposite of what most people generally expect.

The reasons behind this might seem self-explanatory, but they are important to understand. Neighborhoods with high average incomes but little diversity in housing options tend to attract homeowners who are looking for areas that have higher-ranked schools or that are located closer to their places of work, but that are not necessarily within their financial means. Diverse-housing neighborhoods may offer all of these same benefits but with more affordable options. This includes single-family homes, duplexes, apartments and more.

Deciding which neighborhood to buy a home in can be just as important as deciding which home to buy. Still, even for those who take the greatest care in deciding which home to purchase, unforeseen emergencies, expenses or loss in income can create a financially difficult situation. This does not mean that home foreclosure is inevitable, though, and indeed many Florida homeowners are able to stay in their homes by working with both an experienced counsel as well as the bank.

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