Detroit News documents the decimation of one city block


#1

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#2

One block on Greensboro Street saw 33 of 38 homes go into mortgage or tax foreclosure in the last ten years.

(If they were decimated, only four would be in foreclosure.)


#3

it’s interesting race isn’t mentioned at all in the newspaper’s summary of findings.

a quick hunt around the webs indicates subprime lenders more often targeted minorities, there’s at least one study saying while traditional loans decrease segregation subprimes loans may actually increase segregation, and there are indications the benefits of recovery have been flowing mainly towards whites ( academic analysis, and otherwise ).

in fact, unless i’m missing something, it seems there are only two mentions of race in their articles:

His neighborhood [was] among the top tracts nationwide with the highest rates of subprime lending… Others were in enclaves of St. Louis; Houston; Memphis, Tennessee; Jacksonville, Florida, and Jackson, Mississippi. All are overwhelmingly African-American neighborhoods.

and:

An investigation by the U.S. Department of Justice found that National City charged black and Hispanic borrowers higher loan rates based on their race.

what gives detroit news?


#4

Why, when a property is seized for unpaid taxes, does the municipality take the whole thing? Why don’t they sell it, take out the amount equal to the unpaid tax, and give the change to the former owner? (Or maybe I’m wrong, and they do give the change to the owner, but I’ve never heard that.)


#5

I’m not clear why people use the phrase “predatory subprime lenders”.

These are businesses which makes loans to “subprime borrowers”, people who would not otherwise be able to purchase property because they don’t have a sufficient down payment or cannot afford the monthly payments. So the interest rate is high, to compensate for the risk.

With such loans often the borrower can’t afford the payments, doesn’t have much or any money invested as a down payment, and hence abandons the property. Then the lender has to foreclose. This doesn’t seems surprising or “predatory”.


#6

Until you meet the sales team and the marketing department, anyway.


#7

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