Targeting foreclosure interventions: an analysis of neighborhood characteristics associated with high foreclosure rates in two Minnesota counties

This study examines the statistical association of foreclosure sales with social, economic and housing variables measured at the Census tract level for two purposes of interest to foreclosure mitigation practitioners —- to assess whether it is feasible to identify in advance neighborhoods likely to have high rates of foreclosure, and to explore the socioeconomic traits of high-foreclosure neighborhoods so as to design appropriate mitigation programs. We collected data on foreclosure sales in 2002 from the sheriff’s departments of Hennepin and Ramsey counties, the two core counties that comprise the Minneapolis-St. Paul MSA. We find that several factors commonly associated with high foreclosure sale rates could have correctly identified, in advance, most neighborhoods with high rates of mortgage foreclosure. To guide the design of foreclosure mitigation programs, we also present evidence that foreclosure risks in our two counties were highest in neighborhoods with elevated credit risk indicators and a high proportion of homeowners who are recent minority buyers or young. We show that an accurate credit risk variable is among the best predictors of foreclosure and also critically affects our multivariate analysis of factors associated with foreclosure. To limit social losses associated with foreclosures, we conclude that consideration should be given to enhancing public access to data on mortgages, foreclosures, and foreclosure risk factors, especially the neighborhood distribution of credit scores.

Protecting Your Home From Foreclosure

This brochure prepared for working families by the AFL-CIO details steps in the foreclosure process, alternatives to foreclosure, and ways to protect individual rights for those facing foreclosure

Fostering Equitable Foreclosure Recovery

This report provides essential information to inform policy discussions about foreclosure recovery. It presents information about the foreclosure crisis and its consequences, describes the federal program created to help communities recover from the impacts of foreclosures, shares case studies of foreclosure recovery efforts in three regions in the Northwest -- Minneapolis-St. Paul, Portland, and Seattle -- and suggests policy recommendations for ensuring equitable recovery

Mortgage Foreclosures in Atlanta: Patterns and Policy Issues

Metropolitan Atlanta is experiencing a foreclosure boom as the number of failed mortgages more than doubled in less than five years, between 2000 and 2005. These foreclosures impose significant costs not only on borrowers and lenders, but also on municipal governments, neighboring homeowners and others with a financial interest in nearby properties. As a result, foreclosure avoidance strategies must involve not only federal, state and local public agencies, but also responsible mortgage industry officials, consumer groups, and community-based, not-for profit organizations. This report was commissioned by Doug Dylla at NeighborWorks America to help build awareness of foreclosure problems and craft a comprehensive foreclosure-avoidance strategy for metropolitan Atlanta. The work presented here serves as a companion to the Foreclosure Prevention Forum cosponsored by NeighborWorks America and the Atlanta Federal Reserve on May 23, 2005. The forum brought together more than 150 leaders from the mortgage industry, state and local government, the advocacy community, and academic and policy researchers. These participants generated a variety of collaborative approaches to address issues related to mortgage failures and foreclosures in the Atlanta region.The report was written and researched by Mark Duda and William Apgar. It expands on research presented by Duda at the forum and is intended to characterize the current situation with respect to mortgage failures in metropolitan Atlanta, as well as previous research completed by the authors on foreclosure avoidance in Chicago and Los Angeles. The foreclosure data used in this report were generously provided by EquiSystems, LLC, producer of the Atlanta Foreclosure Report

Characteristics of high foreclosure neighborhoods in the Tenth District

The foreclosure crisis that began in earnest in 2006 continues to shrink the once valuable assets of homeowners, communities, and investors. In the last three years, more than three million households have lost their homes, and as many as 5 million more could lose their homes in the next three years. ; A striking feature of the crisis is the variation in its severity across both time and space. Initially, the foreclosure crisis hit low-income neighborhoods disproportionately. Foreclosures remain concentrated in these neighborhoods. But in recent months, the foreclosure epidemic has spread more deeply into higher-income neighborhoods. What accounts for the evolving pattern of foreclosure rates across neighborhoods, and where might concentrations of foreclosures occur in the future? ; Edmiston analyzes the seven states of the Tenth Federal Reserve District to help shed light on the foreclosure rate pattern and to explore where foreclosure trends are likely to head. His analysis confirms that foreclosure rates have been high in low-income neighborhoods--but only to the extent that subprime mortgages penetrated those neighborhoods. He also finds that the foreclosure crisis is seeping into higher-income neighborhoods--due primarily to unfavorable conditions in local economies and residential real estate markets.

Keeping Your Home: A Guide to Foreclosure Prevention and Assistance in Prince George's County, MD

Offers step-by-step guidance on avoiding foreclosure and negotiating with lenders. Explains foreclosure and eviction procedures. Includes lists of housing counseling agencies, emergency service organizations, and government programs

Rising foreclosures in the United States: a perfect storm

Residential foreclosures in the United States have been rising very rapidly since 2006. In the second quarter of 2007, the share of outstanding mortgages in some stage of foreclosure stood at 1.4 percent, near historic highs and up from less than 1 percent a year earlier. The number of mortgages entering the foreclosure process reached an all-time high in mid-2007, suggesting that the foreclosure surge is likely to get worse before it gets better. ; The foreclosure surge was created by a perfect storm of events. First, in recent years the share of subprime mortgage originations increased substantially. Second, foreclosure rates for adjustable-rate mortgages (ARMs) have increased considerably, especially for subprime ARMs. This increase is largely due to rising short-term interest rates and to payment resets for many nontraditional mortgages. Finally, high loan-to-value originations in recent years, coupled with stagnant or falling home prices, have left many people with insufficient equity to sell or refinance their homes. ; Edmiston and Zalneraitis provide a detailed dissection of the current foreclosure surge. They conclude with a discussion of why the foreclosure situation is likely to get worse over the next one to two years and why it is likely to improve afterward.Mortgage loans

Foreclosures and Renters in Washington, DC

Provides an overview of how the foreclosure crisis affects renters in the District of Columbia, with a focus on areas east of the Anacostia River. Examines foreclosure data by neighborhood and property type and compares renter- and owner-occupied units

Foreclosures in New York: What's Really Going On

Four years into the mortgage meltdown, the home foreclosure crisis in New York State continues unabated, particularly in low income neighborhoods and communities of color. Recent reports on foreclosures in New York cite a decline in foreclosure actions filed in New York courts. These reports, however, fail to include key information needed to understand the true foreclosure picture and formulate effective public policy. According to NEDAP's analysis of new mortgage default and delinquency data, foreclosure risk remains disturbingly high in New York. NEDAP found that more than 345,000 mortgages were in default or delinquent in New York State, in 2011. This staggering number -- based on 90-day preforeclosure notices that New York now requires servicers to send to homeowners -- indicates severe mortgage distress and risk of foreclosure and destabilization for huge numbers of families and communities throughout the state.The number of foreclosure actions (lis pendens) filed against New York homeowners has indeed dropped, notwithstanding the extremely high number of mortgage defaults and delinquencies. The decline in foreclosure filings, however, is largely attributable to banks' inability to produce documentation required to initiate foreclosure cases, as New York courts heighten their scrutiny of banks' foreclosure filings. NEDAP found that 90-day pre-foreclosure notices in New York City, for example, outnumbered foreclosure actions filed in New York courts 14 to 1

Estimating Vertical Foreclosure in U.S. Gasoline Supply

We examine the competitive effects of the vertical integration of gasoline refineries and retailers in the U.S. Adapting the first-order condition approach of static oligopoly games to the analysis of vertically related oligopolies, we develop a novel framework for directly evaluating the strategic foreclosure effect and the effciency benefits associated with vertical integration. Applying this framework, we find significant evidence for both vertical foreclosure and effciency benefits. The foreclosure effect dominates the effciency benefits for more than half of the refining firms in the sample. Vertical foreclosure is found to increase the wholesale price of refined gasoline by 0.2 to 0.6 cents per gallon.vertical integration, separation, foreclosure, market conduct, petroleum industry