Breaking the chain: Understanding the association between foreclosure intensity and neighborhood satisfaction

We used the 2004 Homeowner Satisfaction Survey and foreclosed property data from 2001 to 2004 in Franklin County, Ohio to explore the effect of foreclosure intensity on resident satisfaction. We used a structural equation model to capture the chain reaction of concentrated neighborhood disadvantage on foreclosure intensity and residents' neighborhood satisfaction. We found that the impacts of foreclosures are not limited to lenders and owners of mortgaged homes but extended to other residents living in the neighborhood. In this regard, we recommend housing recession recovery efforts must incorporate programs to alleviate neighbors' psychological distress.