Racial Discrimination by Banks Is Worsening the Foreclosure Crisis
Alan Jenkins - Executive Director and Co-Founder of The Opportunity Agenda
The Opportunity Agenda
April 15th, 2012
This is the first entry in a series based on the National Fair Housing Alliance report, â€śThe Banks Are Back, Our Neighborhoods Are Not,â€ť that examines ongoing discrimination in the marketing and maintenance of bank-owned foreclosed properties.
Is there a house in your neighborhood that everybody hates to walk past? You know, the one with broken and boarded up windows, trash left to gather on the lawn, and grass so overgrown itâ€™s becoming a habitat for rodents?
If you have a house like that in your community, you know itâ€™s more than just an eyesore. Neglected, vacant houses depress property values throughout the community, and can threaten health and safety. They erode the sense of community and stability that creates vibrant localities, and they hamper economic resiliency. With a national foreclosure crisis still in full swing, such houses are all too common.
You might be surprised to learn, though, that if you have problem properties like that in your neighborhood, thereâ€™s a good chance your absentee neighbor is a bank. More shocking still, banks are neglecting houses they own in minority communities even more frequentlyâ€”much more frequentlyâ€”than those they hold in white communities.
A detailed undercover investigation unveiled last week by the National Fair Housing Alliance and several regional partners shows not only that banks too frequently fail to maintain foreclosed properties that they own, but that they tend to neglect their properties in communities of color at a much higher rate, with devastating consequences.
A large number of the neglected, bank-owned properties have broken or missing doors and windows, inviting vandalism and trespassers. And many have safety hazards that endanger the public. Those and other defects are significantly more prevalent in bank-owned properties located in communities of color. Another finding is that, on average, the banks are not marketing houses located in communities of color as aggressively to individual homebuyers as they do properties in white neighborhoods. The properties in white neighborhoods are, for example, more likely to have clear and professional â€śfor saleâ€ť signs. When banks both poorly maintain and poorly market foreclosed houses, the properties tend to stay vacant longer and to eventually be sold to speculators, rather than to people who would make the houses their home.
The discriminatory differences are stark. In Dayton, Ohio, for example, 60% of bank-owned properties in African-American neighborhoods had broken or unsecured doors, compared to only 18% in white neighborhoods. In Atlanta, properties in African-American neighborhoods were almost five times more likely than homes in white neighborhoods to lack a â€śfor saleâ€ť sign. And in Dallas, 73% of the bank-owned homes in predominantly non-white neighborhoods had trash on their properties, while only 37% in white areas did.
Delivered by The Daily Sheeple
Contributed by Alan Jenkins – Executive Director and Co-Founder of The Opportunity Agenda of The Opportunity Agenda.
Please share: Spread the word to sheeple far and wide
Leave A Comment...
The Daily Sheeple Home Page