New Study Finds Banks Maintain Foreclosed Homes Worse in Communities of Color

Oakland Picture

A bank-owned home in Oakland that was photographed as part of new study.

Fair Housing of Marin (FHOM), the National Fair Housing Alliance (NFHA), and 16 fair housing centers released a report earlier this week detailing racial disparities in maintenance of bank-owned and Fannie Mae-owned foreclosures in 30 metro areas nationwide. FHOM investigated the Vallejo area and FHOM and NFHA investigated the Richmond and Oakland areas.

The investigations took into account over 30 different aspects of the maintenance and marketing of each property. REOs in communities of color were 2.6 times more likely to have 10 or more deficiencies than REOs in White neighborhoods (32.0% vs. 12.4%).

In the areas that FHOM investigated, REOs in communities of color were

  • 2 to 3 times more likely to have trash accumulated on the premises than REOs in White neighborhoods;
  • about 2.5 times more likely to have unsecured, broken, or boarded windows or have a trespassing or warning sign than REOs in White neighborhoods;
  • about 2.5 times more likely to have a trespassing or warning sign versus REOs in White communities.

To read the full press release about the report and its troubling findings, visit the Fair Housing of Marin website: Investigations of Bank-Owned Properties Uncovers Discrimination

To read the full report, visit this link: http://bit.ly/reo2014