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Blacks and Hispanics lost $1 trillion in Home Equity

Posted by Admin On November - 14 - 2012

(A Reprint from Louisiana Weekly) 

Among the 10.9 million homes that went into foreclosure between 2007 and 2011, more than half of the “spillover” cost to nearby homes have led to a $1 trillion loss in home equity for African-American and Latino families., according to a new report by the Center for Responsible Lending titled, “Collateral Damage: The Spillover Costs of Foreclosures.”

The report said, “Families impacted in minority neighborhoods have lost or will lose on average, $37,084 or 13 percent of their home value.” By comparison, the overall average American homeowner affected by nearby foreclosures will lose only seven percent of their home value, or $21,077.

The most recently-available census data shows that African Americans and Latinos comprise less than 30 percent of the nation’s population. Yet together, neighborhoods of color shoulder more than half of the $1.95 trillion in the drain on neighboring property values as a result of foreclosures.

“CRL’s report is troubling evidence of how much the economic cost of foreclosures are spilling over into communities all over America,” said Wade Henderson, president and CEO of the Leadership Conference on Civil and Human Rights. “Communi­ties of color—which have been targeted for years by predatory lenders, and abused for years by mortgage servicers—have been practically drowning. Until policymakers get serious about reducing foreclosures and restoring meaningful home ownership in all communities, a full economic recovery will likely remain out of reach.”

Compounding the problem, communities of color still suffer from stark wealth gaps when compared to whites. Earlier this year, the U.S. Census Bureau found that African Americans, Latinos and Asian-Americans together lost nearly 60 percent of median household net worth from 2005-2010. Over that same period, median net worth for white families dropped by 23 percent, about a third of the loss rate for people of color. With fewer investment portfolios and lower earnings, the hope to build wealth for communities of color often rests with the value of their home investment.

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Welcome to CopyLine Magazine! The first issue of CopyLine Magazine was published in November, 1990, by Editor & Publisher Juanita Bratcher. CopyLine’s main focus is on the political arena – to inform our readers and analyze many of the pressing issues of the day - controversial or otherwise. Our objectives are clear – to keep you abreast of political happenings and maneuvering in the political arena, by reporting and providing provocative commentaries on various issues. For more about CopyLine Magazine, CopyLine Blog, and CopyLine Television/Video, please visit juanitabratcher.com, copylinemagazine.com, and oneononetelevision.com. Bratcher has been a News/Reporter, Author, Publisher, and Journalist for 33 years. She is the author of six books, including “Harold: The Making of a Big City Mayor” (Harold Washington), Chicago’s first African-American mayor; and “Beyond the Boardroom: Empowering a New Generation of Leaders,” about John Herman Stroger, Jr., the first African-American elected President of the Cook County Board. Bratcher is also a Poet/Songwriter, with 17 records – produced by HillTop Records of Hollywood, California. Juanita Bratcher Publisher

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