The Foreclosure Crisis and Community Development: Exploring REO Dynamics in Hard-Hit Neighborhoods

Ingrid Gould Ellen, Josiah Madar, Mary Weselcouch

Research output: Contribution to journalArticle

Abstract

Since the onset of the foreclosure crisis, many communities have faced a glut of properties that have completed the foreclosure process and are now owned by banks or other mortgage lenders. Policy-makers worry that large concentrations of these properties, referred to as ‘real estate owned’ or ‘REO,’ impose spillover effects on the price of homes and quality of life in surrounding neighborhood. Despite receiving significant policy attention, our understanding of the size, nature, and distribution of current REO stocks, as well as what becomes of properties after being sold, is extremely limited or anecdotal. Our paper shines new empirical light on the REO problem in hard-hit neighborhoods by using local data sources to analyze recent REO trends in New York City and the core counties of the Atlanta and Miami areas. For each, we calculate the size of the REO stock over time in different neighborhood types, estimate the types of purchasers, and determine whether purchased REO properties are flipped.

Original languageEnglish (US)
Pages (from-to)535-559
Number of pages25
JournalHousing Studies
Volume30
Issue number4
DOIs
StatePublished - May 19 2015

Fingerprint

foreclosure
community development
spillover effect
real estate
quality of life
bank
trend
community
policy

Keywords

  • Foreclosure
  • housing market
  • neighborhood change
  • neighborhood stabilization
  • neighborhoods
  • REO

ASJC Scopus subject areas

  • Environmental Science (miscellaneous)
  • Sociology and Political Science
  • Urban Studies

Cite this

The Foreclosure Crisis and Community Development : Exploring REO Dynamics in Hard-Hit Neighborhoods. / Ellen, Ingrid Gould; Madar, Josiah; Weselcouch, Mary.

In: Housing Studies, Vol. 30, No. 4, 19.05.2015, p. 535-559.

Research output: Contribution to journalArticle

@article{f6a0b597a445405ea74db9a6bfc36680,
title = "The Foreclosure Crisis and Community Development: Exploring REO Dynamics in Hard-Hit Neighborhoods",
abstract = "Since the onset of the foreclosure crisis, many communities have faced a glut of properties that have completed the foreclosure process and are now owned by banks or other mortgage lenders. Policy-makers worry that large concentrations of these properties, referred to as ‘real estate owned’ or ‘REO,’ impose spillover effects on the price of homes and quality of life in surrounding neighborhood. Despite receiving significant policy attention, our understanding of the size, nature, and distribution of current REO stocks, as well as what becomes of properties after being sold, is extremely limited or anecdotal. Our paper shines new empirical light on the REO problem in hard-hit neighborhoods by using local data sources to analyze recent REO trends in New York City and the core counties of the Atlanta and Miami areas. For each, we calculate the size of the REO stock over time in different neighborhood types, estimate the types of purchasers, and determine whether purchased REO properties are flipped.",
keywords = "Foreclosure, housing market, neighborhood change, neighborhood stabilization, neighborhoods, REO",
author = "Ellen, {Ingrid Gould} and Josiah Madar and Mary Weselcouch",
year = "2015",
month = "5",
day = "19",
doi = "10.1080/02673037.2014.882496",
language = "English (US)",
volume = "30",
pages = "535--559",
journal = "Housing Studies",
issn = "0267-3037",
publisher = "Routledge",
number = "4",

}

TY - JOUR

T1 - The Foreclosure Crisis and Community Development

T2 - Exploring REO Dynamics in Hard-Hit Neighborhoods

AU - Ellen, Ingrid Gould

AU - Madar, Josiah

AU - Weselcouch, Mary

PY - 2015/5/19

Y1 - 2015/5/19

N2 - Since the onset of the foreclosure crisis, many communities have faced a glut of properties that have completed the foreclosure process and are now owned by banks or other mortgage lenders. Policy-makers worry that large concentrations of these properties, referred to as ‘real estate owned’ or ‘REO,’ impose spillover effects on the price of homes and quality of life in surrounding neighborhood. Despite receiving significant policy attention, our understanding of the size, nature, and distribution of current REO stocks, as well as what becomes of properties after being sold, is extremely limited or anecdotal. Our paper shines new empirical light on the REO problem in hard-hit neighborhoods by using local data sources to analyze recent REO trends in New York City and the core counties of the Atlanta and Miami areas. For each, we calculate the size of the REO stock over time in different neighborhood types, estimate the types of purchasers, and determine whether purchased REO properties are flipped.

AB - Since the onset of the foreclosure crisis, many communities have faced a glut of properties that have completed the foreclosure process and are now owned by banks or other mortgage lenders. Policy-makers worry that large concentrations of these properties, referred to as ‘real estate owned’ or ‘REO,’ impose spillover effects on the price of homes and quality of life in surrounding neighborhood. Despite receiving significant policy attention, our understanding of the size, nature, and distribution of current REO stocks, as well as what becomes of properties after being sold, is extremely limited or anecdotal. Our paper shines new empirical light on the REO problem in hard-hit neighborhoods by using local data sources to analyze recent REO trends in New York City and the core counties of the Atlanta and Miami areas. For each, we calculate the size of the REO stock over time in different neighborhood types, estimate the types of purchasers, and determine whether purchased REO properties are flipped.

KW - Foreclosure

KW - housing market

KW - neighborhood change

KW - neighborhood stabilization

KW - neighborhoods

KW - REO

UR - http://www.scopus.com/inward/record.url?scp=84946491400&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84946491400&partnerID=8YFLogxK

U2 - 10.1080/02673037.2014.882496

DO - 10.1080/02673037.2014.882496

M3 - Article

AN - SCOPUS:84946491400

VL - 30

SP - 535

EP - 559

JO - Housing Studies

JF - Housing Studies

SN - 0267-3037

IS - 4

ER -