Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > Fiat Ponzi

Reply
 
LinkBack Thread Tools
Old 12-11-2013, 01:19 AM   #1
n00b
 
bemithwurz's Avatar
 
Join Date: Dec 2013
Location: CA, USA
Posts: 2
Liked: 0 times
Minority neighborhoods slower to recover from housing crisis

The housing crisis hit Americans hard. Four million homeowners have already experienced foreclosure and another 11 million still owe more than their homes are worth. The number of those affected however goes well beyond these 15 million however when you consider the other family members. Then there’s the neighbors. You might be wondering how the foreclosure crisis can affect the neighbors of those going through foreclosure. When many homes in the area are foreclosed on and become vacant, the value of surrounding homes can drop dramatically. This has become an especially big problem in minority neighborhoods.

Communities of color hit hardest

When the housing crisis hit in 2008, it was the minorities who were hit hardest. Minorities were the main target for predatory loans so when the housing prices dropped suddenly, they were the ones left underwater. As a result, communities of color experienced a disproportionate number of foreclosures. As more and more homes are foreclosed on and vacated, the neighborhood begins to look worse and worse as homes fall into disrepair.
Not only were minority neighborhoods hit harder, but they’re experiencing the recover much slower as well. While many more affluent areas have already recovered from the housing crisis, minority neighborhoods are experiencing little, if any, recovery.

A possible solution

So far, the federal government has not been able to find a solution for these communities of color so local governments have stepped in with a possible solution. They want to use their power of eminent domain to seize underwater mortgages, pay fair market value to the current mortgage owner, and then re-issue the mortgage at a more affordable rate. This would essentially streamline the housing crisis recovery in neighborhoods that were harder hit by fixing up abandoned properties and raising home values.

An unexpected opponent

Surprisingly, the Federal Housing Finance Agency (FHFA) threatened legal action and the withdrawal of credit to any local governments that use eminent domain powers to seize mortgages. A coalition of community groups filed a Freedom of Information Act (FOIA) request asking why the FHFA was opposing them but got no response. Now the American Civil Liberties Union (ACLU) has filed a FOIA lawsuit asking a judge to order the FHFA to give a response. In the meantime, communities of color can only wait for an answer.

Business, real estate, and bankruptcy law and litigation news brought to you by mbblegal.net

Source: aclu.org/blog/racial-justice/communities-color-face-unexpected-foe-foreclosure-recovery
bemithwurz is offline   Reply With Quote
Old 12-11-2013, 06:37 AM   #2
Yellow Jacket
 
rblong2us's Avatar
 
Join Date: Nov 2011
Location: off world
Posts: 2,000
Liked: 882 times
I thought the plan was for the banks to end up owning all the bricks n mortar and the sheeple to pay em rent ........

Cant have local democratic process spoil things can we ?
__________________
if it cant be done with a digger .... it cant be done
rblong2us is offline   Reply With Quote
Old 12-11-2013, 07:23 AM   #3
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 7,101
Liked: 2456 times
Sounds like govco wants to use eminent domain as a backdoor bailout.

Welcome to the forum bemithwurz.
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Bernank will support housing PMBug Fiat Ponzi 2 11-16-2012 08:13 AM
Real life Minority Report benjamen STS 10 07-02-2012 01:44 PM
US Housing Market Summary Unobtanium STS 1 05-05-2012 04:31 PM
Historic housing prices chart, adj for inflation Unobtanium STS 12 05-03-2012 06:21 AM
Learning how to recover gold from garbage Arkad BSTS 17 04-12-2012 04:00 PM


All times are GMT -5. The time now is 09:23 PM.


Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of PMBug.com copyright © 2011 - 2019 Measuring Up. All Rights Reserved.