In general, homeowners try to avoid foreclosure proceedings at all costs. Unfortunately, there are times when people just can’t afford their mortgages anymore or housing values plummet, leaving people unable to sell. In these instances, people are often forced, or sometimes choose, to stop paying their mortgages, and banks eventually initiate foreclosure proceedings. Once the foreclosure process is completed and a bank owns the property, these homes sometimes end up sitting empty for months and even years.
Obviously, the foreclosure of a home negatively impacts home values in the immediate neighborhood and frequently affects the surrounding areas. These negative consequences, in turn, have a detrimental impact on local real estate markets and ultimately local economies. However, it turns out that foreclosures don’t just hurt the economy. Researchers conducted a study to determine the impact of foreclosures on an individual’s health, and they didn’t evaluate the health of a homeowner whose house ends up in foreclosure.
The study measured the blood pressure of individuals over the course of eleven years, including individuals who lived within 100 meters of a foreclosure. The researchers controlled for other factors, including age, race, income, and foreclosure rates within a particular area. The researchers wanted to make sure that they were assessing general neighborhood stress. And, the study specifically examined bank-owned foreclosures, which as mentioned, often sit empty for quite some time. Interestingly, the researchers concluded that living near a foreclosure elevates a person’s blood pressure and negatively affects health in other ways, including increasing alcohol consumption and causing weight gain, likely due to the increased stress and the impact on sleep.
This isn’t terribly surprising news, but it is a strong, scientific reminder of the impact that stress has on our bodies. It is of particular concern for Florida given that the state’s foreclosure rate remains among the highest in the nation. Fortunately, the Florida economy is doing quite well, so the foreclosure rate should steadily decline. In the meantime, it’s important for citizens and officials to take into account the public health implications of a flailing economy and weakened real estate market. In light the of consequences of the last bubble, economic and otherwise, we need to learn to compromise and make sound decisions with respect to economic policies and regulations to avoid further repercussions.