How Foreclosures Affect Minorities and Urban Communities
As foreclosures threaten the financial stability of all families across the nation, it is particularly devastating to African-American and Latino families. Among more recent borrowers reported in census, it is estimated that nearly 8% of both African Americans and Latinos have lost their homes to foreclosures, compared to 4.5% of whites. What’s more is that often ethnic communities quickly have turned into homeowner wastelands with foreclosed homes on every block as a result of the foreclosure crash in 2007. Defaults on homes occur three times as often in mostly minority census tracts when compared with mostly white ones. In fact, 85% of the worst hit neighborhoods-- where the default rate is at least double the regional average—have a majority of black and Latino homeowners. With regards to foreclosure, one can’t name a lack of personal pursuit as the problem is not solely among lower income or uneducated population of minorities. In one of the biggest foreclosure regions of New York City, black households making more than $68,000 a year are almost five times as likely to hold high-interest subprime mortgages as are whites of similar or even lower incomes. This is particularly painful when one considers that just four or five years ago black homeownership peaked nationwide at an all-time high. Since these times, average home values have dropped dramatically stripping families of home equity. The effects for school aged children during these times in particular introduce significant uncertainty in a child’s life. Foreclosures force neighborhood moves, school changes, disrupting the social lives and thereby affecting grades and educational progress. The instability to the families of these children is too much to divide attention among them and as a result minority children face an even greater adverse reaction to foreclosure. The FAIR Program was designed to address the concerns of minority homeowners and provide a solution to foreclosure avoidance. Our FAIR Counselors are available to speak with you regarding your current loan and assist you in applying for modifications, refinancing, short sales and selling during a foreclosure. Contact us for a review of your loan and ways to avoid foreclosure of your home.
