If you don’t own a car, it seems like you are more likely to be able to retain your home based on the following report:

“After studying 40,000 home loans in three cities over a period of 30 years, the National Resources Defense Council and the Center for Neighborhood Technology determined that the likelihood of foreclosure grew as neighborhood car ownership levels rose. The research suggests that if home owners do not need to own a car, they are better able to weather financial shocks such as spiking gas prices or a job loss.

The study recommends that lenders factor location efficiency and borrowers’ transportation costs into underwriting decisions, thus providing “proportionally better borrowing terms for purchasers of location-efficient homes.”

Source: SmartMoney, Lisa Scherzer(02/22/2010)