Solving the Foreclosure Crisis in Low-Income Neighborhoods Essay

With Massachusetts State spending on affordable housing and open space at a historic low, when considered as a percentage of the total budget, the production of dwelling units and the conservation of land have become the responsibility of local government, but cities and towns do not build housing, except in rare circumstances. As well they do not routinely buy expensive tracts of open land,

The author explained how the government established policies and initiatives that created ghettos and suburbs. The Federal Housing Administration (FHA) is a program that helped citizens become homeowners by lending loans. However, only certain neighborhoods qualified for those loans. Research and data were used to prove that certain areas were considered a loss of investment. The

Seeing other people reactions towards foreclosure helps me to develop a meaningful value of life and how to appreciate it everyday of my life. As I see what is going on around me I came up with three plans that can be executed to help all people who are dealing with foreclosure issues. This can become a major factor for the economy. One is called Own A Home , Financially Fit, and Bills To Kill. These are guaranteed plans that will help any individual that feels that they are not financially secured to become a homeowner. The Own A Home program is designed for aspiring homeowner in which they

For the past fifty years the shift from meeting the housing needs of the poor through government projects-based housing to a more individual approach, has been slowly implemented. Housing vouchers now enable underprivileged populations to move from high-poverty, segregated neighborhoods to more un-segregated, low-poverty neighborhoods. Low-poverty neighborhoods have less crime, better opportunities for employment, and more diverse schooling options. Some housing advocates however, contend that housing assistance is unnecessary and is an income subsidy that should be combined with other social safety nets (Clark, W. 2008).

Different areas of the private sector took control of the racial segregation. Areas such as real estate, banks, labor, and toxic waste locations have participated in some way to continue the segregation and inferiority of people of color. “African Americans and other communities of color are often victims of land-use decision making that mirrors the power arrangements of the dominant society” (Bullard [1994]2004:269). The land-use decisions are used by the real estate industry. The real estate industry along with the bank industry have worked together in order to make it almost impossible for people of color to acquire their own homes. When individuals of color do obtain their own homes the real estate industry corrals them all into one zone. Then the banks charge homeowners in these zones high interest rates on the mortgages needed to maintain their home ownership. “Zoning is probably the most widely applied mechanism to regulate urban land use in the United States” (Bullard [1994]2004:269). When people of color are corralled into a neighborhood the quality of the neighborhood is diminished. The

Affordable housing has become the paramount issue of cities and dense urban areas. San Francisco is the posterchild of an unaffordable city that regardless of immense investment from blue chip firms like Google, Facebook, and their ilk of startups evaluated at $1 billion or more, policymakers and elected officials must wrestle with the housing affordability crisis that is considered endogenous to swaths of homelessness and record statistics on crime. In New York City, Mayor Bill de Blasio has made affordable housing the centerpiece of his legislation and championed the cause as a social justice issue—neighborhoods must remain affordable to maintain diversity for all races, ethnicities, and low-income families. A small sample of 827 New Yorkers by the NY1-Baruch College City Poll found the main concern of respondents was affordable housing while crime, jobs, and homelessness were peripheral problems (Cuza, 2016). The public discourse on how to address housing across the United States has pointed to negative externalities that surround rent-regulation and homeownership. Conversely, for this essay I will present various cases in order to illustrate the housing crunch is influenced less by housing and land regulations, or antagonistic homeowners but is induced by global market forces.

In Baltimore, the abandoned houses allowed investors to buy the houses and turn them into luxury condominiums and houses. In turn, this encourages other companies to continue to develop condominiums and houses and abandon the development of low-income housing. This cycle is called gentrification, but it is disguised as restoration to the city

Eminent domain disproportionately affects racial and ethnic minorities, the elderly, and the economically disadvantaged. For example, in San Jose, California, 95 percent of the properties targeted for redevelopment are owned by minorities, even though only 30 percent of businesses are owned by minorities. These groups are disproportionately affected because they are easy political and economic targets. Condemnations in minority or elderly neighborhoods are often easier because they are less likely or able to resist. Areas with low property values are targeted because they cost less and the State gains financially when they replace areas with low property values with higher values. / / When an area is taken for "economic development," the

Opening a new business, remodeling a house, and buying land could all be exciting opportunities; it creates a chance for an owner to make something their own. It takes time and dedication, trial and error, money and divergent thinking, but in the end of all the sacrifice and dedication, that land, or house becomes everything the owner could have ever wanted and more, because it is their dream and they created it. However, dreams can falter, that owner with the new business believes full heartedly in having a future and a successful business, but over time things change and unfortunately that business that was once strong, now becomes repossessed. That new home has been foreclosed, and that pure land, rich in soil is now sold to a high-end

This can sometimes cause a domino effect to the neighborhood and cause a halt in real estate within the neighborhood. Blighted properties attract crime and become difficult to maneuver and rehab due to ownership and property issues. Urban blight has taken cities like Detroit by storm, making it one of the most blighted cities in the United States. Some places in Detroit have entire neighborhoods that are abandoned and deemed inhabitable. In spite of the fact, the term blight is more relevant today, scholars note that it has been an ongoing and complex issue throughout history especially within the academic literature (Schilling). Scholars from a different line of work have documented blight’s evolution from the early 1900’s, where slums and disease took place all around the United States, most of the time targeting minority communities throughout American cities (Schilling). Blight can be noted in different parts of history, and all over the world, usually different monumental events happen that leads to a snowball effect and result into blighted properties. Throughout this paper, urban blight will be discussed in a sequence of events, this paper will attempt to correlate major events in American history to blight and discuss the impact and effect it had on local government at that

Gentrification would have the potential to be good if the people who have been long-time residences got to live in and enjoy the new community. Unfortunately, the opposite often takes place with gentrification. Current residents often get evicted and displaced due to rising rent and new demands by the people coming in. The people getting displaced are often minorities who get evicted from their own neighborhoods before being able to experience the changes for themselves. Before people are forced to leave, the state gives them a voucher. A voucher is a discount the state gives you to leave and go to another town. With this voucher you can only go to certain places. You can only go where the voucher tells you to go. For example, if you currently live in South Central, Los Angeles and the voucher says you can move to Watts, then can

Brooklyn, NY – December 30, 2009 Foreclosures continue to rise drastically across the United States due to the recession, and have effected, and continue to affect thousands of families and individuals every day. One aspect we must take into consideration is that most people are not informed of what foreclosure means, or the process, even those who are homeowners. I believe that one step to preventing foreclosure is to educate first-time homebuyers. In addition, first-time homebuyer programs should not only assist potential buyers with financially preparing them to buy a home, but to keep the home once

The United States economy has been in trouble for the past couple of years. The foreclosure crisis is a condition that began due to the inability of homeowners to pay their mortgages. Foreclosure is a legal proceeding whereby a lender obtains a legal termination of a debtor’s right to redemption. The foreclosure rates have been increasing for a considerable period and certain steps have been put into place to solve the problem. While the government, financial institutions and the general public are highly aware of the crisis, the steps taken to combat the problem are still not sufficient as the foreclosure rates are still increasing.

In today’s society, it may seem that gentrification can eliminate poverty and increase neighborhood opportunities. Low-income residents and property owners will be the first to be altered by gentrification. In an email to the editor at the Atlantic, Freeman, the director of the Urban Planning program at Columbia states “ Gentrification brings new amenities and services that benefit not only the newcomers but long term residents too. Full service

The current real estate crisis that America finds itself in is one of the greatest challenges America has ever faced. America’s troubles are further compounded by increasing unemployment of American citizens and environmental problems like global warming. Solving any one of these problems would be a Herculean task, yet they must each be addressed in order to protect American families from disaster. However, it is possible to find a solution to the problems of the real estate crisis that can also be used to improve the problems of the unemployment and environmental destruction. The first part of the solution involves the United States government purchasing the homes that have been foreclosed and using them to offer temporary housing to