TY - JOUR
T1 - From REO to Ruin
T2 - Post-Foreclosure Pathways and the Production of Decline in Detroit, Michigan
AU - Seymour, Eric
N1 - Funding Information: This work was supported by the Robert Kahn Fellowship for the Scientific Study of Social Issues, awarded by the Institute for Social Research at the University of Michigan. I thank Lan Deng and Margaret Dewar for comments on earlier drafts of this article. I also thank the three anonymous reviewers for their constructive comments. All errors remain my own. Publisher Copyright: © 2020, © 2020 Virginia Polytechnic Institute and State University.
PY - 2020/5/3
Y1 - 2020/5/3
N2 - Although much has been written about the localized impacts of foreclosed properties, few studies have examined the role of the main actors handling mortgage-reverted properties, particularly the parties responsible for their disposition. Fewer still have examined these trends in historically stable but hard-hit neighborhoods where owner practices are implicated in current conditions. This study examines the likelihood of the U.S. Department of Housing and Urban Development and the government-sponsored enterprises selling real estate owned homes in the historically stable neighborhoods of Detroit, Michigan, to investors, as well as the likelihood of tax foreclosure following sales to homebuyers and investors. Whereas federal entities were less likely to sell homes to investors, all parties sold a high percentage of homes to investors. Once sold to an investor, the probability of tax foreclosure is extremely high. These results suggest federal and non-federal entities alike are associated with destabilizing and dispossessory outcomes that irreversibly altered these neighborhoods.
AB - Although much has been written about the localized impacts of foreclosed properties, few studies have examined the role of the main actors handling mortgage-reverted properties, particularly the parties responsible for their disposition. Fewer still have examined these trends in historically stable but hard-hit neighborhoods where owner practices are implicated in current conditions. This study examines the likelihood of the U.S. Department of Housing and Urban Development and the government-sponsored enterprises selling real estate owned homes in the historically stable neighborhoods of Detroit, Michigan, to investors, as well as the likelihood of tax foreclosure following sales to homebuyers and investors. Whereas federal entities were less likely to sell homes to investors, all parties sold a high percentage of homes to investors. Once sold to an investor, the probability of tax foreclosure is extremely high. These results suggest federal and non-federal entities alike are associated with destabilizing and dispossessory outcomes that irreversibly altered these neighborhoods.
KW - federal housing agencies
KW - foreclosure
KW - neighborhood change
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U2 - https://doi.org/10.1080/10511482.2020.1725094
DO - https://doi.org/10.1080/10511482.2020.1725094
M3 - Article
VL - 30
SP - 431
EP - 456
JO - Housing Policy Debate
JF - Housing Policy Debate
SN - 1051-1482
IS - 3
ER -