Foreclosing on the American dream? The financial consequences of low-income homeownership

Federal programs have consistently encouraged ever-lower-income households to buy homes, despite concerns about the long-term sustainability and desirability of homeownership from the perspective of wealth-building, especially since the recent housing market collapse and the epidemic of mortgage foreclosures. We ask in this paper: can very low-income households build wealth through sustainable homeownership, with the aid of an innovative public program? We answer this question by examining 122 very low-income households who purchased their homes between 1996 and 2007 after completing an extensive asset-building and homeownership education/counseling program offered by the Housing Authority of the City and County of Denver (DHA), called HOP. We analyze our own longitudinal surveys and focus groups, as well as data compiled from administrative agency sources, real estate records, and longitudinal census data from the Neighborhood Change Database and the Piton Foundation's Neighborhood Facts Database. We find that homeownership attained through HOP typically did provide very low-income households with opportunities to build home equity (both absolutely and relative to generic homeowner cohorts in Denver) and net wealth, although this was contingent on time of purchase and ethnicity. Our multivariate analyses revealed that changes in annualized home equity appreciation were associated with the ethnic composition of the neighborhood and age of property. Annualized wealth accumulation was associated with annualized home equity appreciation, being married throughout the tenure of homeownership, and year of home purchase. HOP homebuyers received exceptionally favorable initial mortgage terms and conditions, often enhanced with down-payment assistance from their own DHA escrow account or from local housing and neighborhood development organizations, resulting in a dramatically low rate of default and foreclosure to date. Moreover, HOP homebuyers were not immune to financial stresses, and the continuing lack of wealth for many makes them vulnerable to future interruptions in primary wage earner's employment or health. We discuss the implications for low-income homeownership policy and argue that the goal of expanding homeownership opportunities should not be abandoned.     

Place,Time, and Philanthropy: Exploring Geographic Mobility and Philanthropic Engagement

America is a nation of movers, and this has implications for public and nonprofit managers who rely on donations and volunteers to increase the capacity of nonprofits and to strengthen local communities. This article explores the impact of time and place on philanthropic engagement, focusing on how three aspects of community—sense of belonging, social connections, and regional culture—are related to volunteering and giving to local organizations. The authors find that geographic mobility affects philanthropic engagement. Drawing on a survey of active older Americans, the authors find that three community factors —sense of community, social networks, and regional cultures— are related to one or both types of philanthropic behavior. The authors conclude by offering thoughts for future research and practice.     

Why People Waive Their Miranda Rights: The Power of Innocence

In a laboratory experiment, 72 participants who were guilty or innocent of a mock theft were apprehended for investigation. Motivated to avoid prosecution and trial, they were confronted by a neutral, sympathetic, or hostile male "detective" who sought a waiver of their Miranda rights. Later, 72 other participants watched videotapes of these sessions and answered questions about the detective and suspect. Strikingly, results showed that although the detective's demeanor had no effect, participants who were truly innocent were significantly more likely to sign a waiver than those who were guilty. Naively believing in the power of their innocence to set them free, most waived their rights even in the hostile detective condition, where the risk of interrogation was apparent. The conceptual and policy implications of these results are discussed.     

The assessment of continued threat to the community in a mentally ill offender program

Community based outpatient treatment for Mentally Disordered Sex Offenders and those found not guility by reason of insanity are based on controversial empirical grounds. The present research examines how mental health evaluators determine when an offender is or is not a threat to the community for purposes of program continuance. Of 13 variables identified by the staff of the offenders' program or from the literature as important in making this prediction, three were found to be related to the evaluation decision: initial psychiatric diagnosis, the presence of supportive relationships in the community, and improvement in therapy. These findings are discussed in terms of the empirical and philosophical literature on psychiatric detention and treatment.     

Same-Sex Couples and the Marriage Model

In Ghaidan v. Godin-Mendoza [2004] U.K.H.L. 30, the U.K. House of Lords upheld the right of a man to succeed to the tenancy of his deceased same-sex partner as if he had been the husband or wife of the deceased. This note examines the five judgements delivered by the court and considers the implications of the decision. It argues that, within the context of family law, Mendoza was a welcome decision but an evolutionary dead-end. The case signals a more promising approach to the development of human rights, but the appropriate use and scope of s.3 of the Human Rights Act 1998 remain somewhat unclear.     

“I’d Know a False Confession if I Saw One”: A Comparative Study of College Students and Police Investigators

College students and police investigators watched or listened to 10 prison inmates confessing to crimes. Half the confessions were true accounts; half were false—concocted for the study. Consistent with much recent research, students were generally more accurate than police, and accuracy rates were higher among those presented with audiotaped than videotaped confessions. In addition, investigators were significantly more confident in their judgments and also prone to judge confessors guilty. To determine if police accuracy would increase if this guilty response bias were neutralized, participants in a second experiment were specifically informed that half the confessions were true and half were false. This manipulation eliminated the investigator response bias, but it did not increase accuracy or lower confidence. These findings are discussed for what they imply about the post-interrogation risks to innocent suspects who confess.