Is the foreclosure crisis a racial justice crisis?
A report from the office of State Senator Klein indicates that 80% of homeowners at risk of foreclosure are in communities of color:
"Of the 29,729 homeowners who have missed multiple mortgage payments as of last month, 10,308 are from Brooklyn, the report says.
New York State Senate Of the 29,729 homeowners who have missed multiple mortgage payments as of last month, 10,308 are from Brooklyn, the report says.
Another 10,060 live in Queens, 4,408 in the Bronx, 4,110 on Staten Island and 843 in Manhattan.
Klein’s report also finds that 80%, or almost 24,000, of those in preforeclosure are from minority communities across the city." (link)
The report also notes the high cost of a foreclosure to surrounding homes nationally:
"This is an average rate of $23,157.89 in home equity lost for each surrounding property. An even higher rate was seen for [m]inority neighborhoods who lose an average of $40,297 of their property’s value." (link)
The report finds the potential lost tax revenue and home equity in NYC communities of color is staggering:
"Should the properties foreclose minority neighborhoods would experience losses of $64 million in property taxes and $13 billion in home equity." (link)
Below is an overview broken down by borough:
While the report somewhat overstates the numbers because its calculations assume that all those at risk of foreclosure will go into foreclosure, at a minimum, it underscores the urgent need to support (i.e. fund) counseling and legal representation for those at risk of foreclosure.
The full report can be found here.