Who Experiences Foreclosures? The Characteristics of Households Experiencing a Foreclosure in Minneapolis, Minnesota

Abstract

Much of the existing research on disparities in residential foreclosures provides strong, but not conclusive, evidence that minority households disproportionately experience foreclosures. Data commonly used in foreclosure research do not allow researchers to use household characteristics of foreclosed properties to test for disparities in experiencing foreclosure. This is a significant omission in the literature since understanding the types of households that most typically experience foreclosure might result in the creation of better targeted and more effective foreclosure prevention and mitigation programs. Using a unique data set this paper explores the characteristics of households that experienced a foreclosure in Minneapolis, Minnesota during fiscal years 2006 and 2007. Research results confirm that African American households disproportionately experience foreclosures, but also indicate that renter households, households with children and foreign-born homeowners are all over-represented among foreclosed households. These results have implications for how policy makers and practitioners address foreclosure prevention and mitigation efforts.

Foreclosure Depresses Voter Turnout: Neighborhood Disruption and the 2008 Presidential Election in California

“…A remaining unexamined link is the connection between declines in voter turnout due to foreclosure and patterns of inequality in political disenfranchisement. Other research demonstrates associations among the socioeconomic status, race, and ethnicity of borrowers and their exposure to subprime lending (Bocian, Li, and Ernst, 2008;Li, 2011) and home foreclosure (Allen, 2011;Rugh and Massey, 2010). Female-headed households have also been particularly exposed (Dymski, Hernandez, and Mohanty, 2011).…”

Comfort and Burden: The Changing Meaning of Home for Owners At‐Risk of Foreclosure

“…A research assistant who is a native Spanish speaker conducted eleven of the interviews in Spanish. While there is no national data available on immigrant foreclosure experiences, regional studies have identified foreign-born homeowners as at potentially greater risk for foreclosure than their native born counterparts (Allen 2011). I coded the transcribed interviews and field notes by identifying common themes and patterns throughout the interviews.…”

Financial capability, money attitudes and socioeconomic status: Risks for experiencing adverse financial events

“…Similarly in the United States, people of low socio-economic status experience the most frequent house foreclosures (Allen, 2011;Pollack & Lynch, 2009). It follows that the likelihood of experiencing negative financial outcomes may be largely explained by socio-economic differences, and to a comparatively smaller extent by individual differences in psychological factors (i.e.…”