Foreclosure can devastate a family, leaving them without a home and in a desperate financial situation. How people get into such an unfortunate situation varies from person to person. Some Garnerville residents may have had to deal with foreclosure -- and according to a new study, foreclosure can be an indictment of a person's math skills.
That assertion may seem elementary, but it even had researchers a little surprised. The researchers performed a study that looked at 300 people, their financial situation, their ability to perform a five-question math test and their home's status. They were looking for a correlation between a person's ability to do math and what type of home loan they would take on. The assumption was that bad math would mean the individual would take on a worse loan.
What researchers found is that bad math makes foreclosure much more likely. About 20 percent of the participants that had a low score on the math test also had their homes go into foreclosure; while only 7 percent that had a high score saw had homes enter foreclosure.
A bankruptcy filing can help anyone -- may they be math wizards or not -- prevent foreclosure. It can also clear past debts, opening up some new possibilities for you to help pay off your mortgage.
One thing to remember about bankruptcy and foreclosure though is that it is a case-by-case relationship. Some people may have extenuating circumstances that reduce the benefits of the filing; other people may have to consider difficult decisions, such as giving away their property to other people as a gift, just to keep the asset safe. These are especially delicate situations, and anyone considering this should consult an attorney to learn how they should handle their unique situation.
Source: Business Insider, "People With Bad Math Skills Are More Likely To Wind Up In Foreclosure," Mandi Woodruff, June 27, 2013