Unending foreclosure crisis: Uneven housing tenure trajectories of post-REO properties

Abstract

The purpose of this study is to explore the housing tenure trajectories of post-REO properties, with a focus on their sales processes and neighborhood spillover effects over time. This study suggests that the renter occupancy of post-REO properties in minority communities could lead to continuing negative spillover effects. Between 2006 and 2013, REO properties were geographically concentrated in low-income Black communities and moderate-income Hispanic neighborhoods in Orange County, Florida. The resale duration of the REO properties in poor African American communities tended to be longer and the post-REO properties in these neighborhoods are more likely to be renter-occupied. In spite of comparatively short resale durations for REOs in Hispanic neighborhoods, post-REO properties were often renter-occupied. The renter-occupancy of post-REO properties might reinforce racial segregation, but it could also be a source of affordable housing. Therefore, it is necessary to monitor the trajectories of post-REO properties and their spillover effects.