Foreclosure

==Affected demographics==
Recent housing studies indicate that [[Minority group|minority]] households disproportionately experience foreclosures. Other overly represented groups include African Americans, renter households, households with children, and foreign-born homeowners. For example, statistics show that African American buyers are 3.3 times more likely than white buyers to be in foreclosure, while Latino and Asian buyers are 2.5 and 1.6 times more likely, respectively. As another statistical example, over 60 per cent of the foreclosures that occurred in [[New York City]] in 2007 involved rental properties. Twenty percent of the foreclosures nationwide were from rental properties. One reason for this is that the majority of these people have borrowed with risky subprime loans. There is a major lack of research done in this area posing problems for three reasons. One, not being able to describe who experiences foreclosure makes it challenging to develop policies and programs that can prevent/reduce this trend for the future. Second, researchers cannot tell the extent to which recent foreclosures have reversed the advances in [[homeownership]] that some groups, historically lacking equal access, have made. Third, research is focused too much on community-level effects even though it is the individual households that are most strongly affected.<ref name="Allen">Allen, R. Who Experiences Foreclosures? The Characteristics of Households Experiencing a Foreclosure in Minneapolis, Minnesota. Housing Studies, 26(6), 845–866.</ref> Many people cite their own or their family members medical conditions as the primary reason for undergoing a foreclosure. Many do not have [[health insurance]] and are unable to adequately provide for their medical needs. This again points to the fact that foreclosures affects already vulnerable populations.<ref name="Pollack">Pollack, C., & Lynch, J. (2009). Health Status of People Undergoing Foreclosure in the Philadelphia Region. American Journal of Public Health, 99(10), 1833–1839.</ref>
Credit scores are greatly impacted after a foreclosure. The average number of points reduced when you are 30 days late on your mortgage payment is 40 – 110 points, 90 days late is 70 – 135 points, and a finalized foreclosure, short sale or deed-in-lieu is 85 – 160 points.<ref>Les Christie, [https://money.cnn.com/2010/04/22/real_estate/foreclosure_credit_score/ "How foreclosure impacts your credit score"] {{webarchive|url=https://web.archive.org/web/20120815090916/https://money.cnn.com/2010/04/22/real_estate/foreclosure_credit_score/ |date=2012-08-15 }}, ''CNN Money'', April 22, 2012</ref>