People living in poorly rated neighborhoods would have had trouble obtaining mortgages for homes there, regardless of their individual creditworthiness. Other consequences most likely piled up from there.“The availability of credit has really significant impacts on every dimension of neighborhood life, in terms of the quality of real estate, the willingness of investors to come in, the prices of property, the emergence of predatory practices,” said Thomas Sugrue, a historian at New York University. “These are all direct consequences of the lack of affordable loans and affordable mortgages.”
Where you live can unfortunately have a huge effect on everything. The banks see this and are reluctant to lend money. Although its a risk, I think people from these neighborhoods should be given more of a chance to get mortgages in order to afford the house they want.