With the high rate of foreclosures... (New York, York: middle-class, loans, broker)

[njnyckid]

Do you think that this city will ever reach the type of poverty and destruction, especially in minority neighborhoods, as it was in the 70s again? I came across this article, very interesting and makes me ponder: http://www.nytimes.com/2009/05/16/ny...ref=realestate

What do you guys think? Plus there's a map that shows where the highest foreclosures among minority communites are & Southeastern Queens is definitely at the top list. And it looks like the heart of Bushwick is suffering also.

[JohnnyBaggO]

during time of crisis its usually the poorest of the poor who suffer most

[Jackson Pollock]

I think the real problem group will be white collar, middle-class workers. They have no voice in the city and very stark prospects in this economy. The wealthy will continue to dominate and the poor will continue to be supported by a social safety net. Meanwhile, unionized, blue collar workers will get infrastructure jobs from the stimulus plan.

[Americanboy]

There were only 4 foreclosures in Manhattan during April.

[njnyckid]

Originally Posted by F430F1

There were only 4 foreclosures in Manhattan during April.

Okay but I'm talking about the whole city in general and if more foreclosures could lead to the destruction of the city that happened decades ago.

[NYCHAITIAN17]

I was in bed stuy yesterday , and also i was in crown heghts , and i also was in east flatbush and noticed more abandoned homes, that i never saw b4, honestly i think the abandoned homes wont really be noticed unless drug dealers and addicts take them over, and use them for operation like in cities like baltimore

[7 Wishes]

Originally Posted by Jackson Pollock

I think the real problem group will be white collar, middle-class workers. They have no voice in the city and very stark prospects in this economy. The wealthy will continue to dominate and the poor will continue to be supported by a social safety net. Meanwhile, unionized, blue collar workers will get infrastructure jobs from the stimulus plan.

Your observation is spot on.

I'm really surprised with the crazy housing prices of this area that we have not seen foreclosures on the scale of Florida or California. I guess time will tell.......

[vitalove]

Sometimes I wonder. There is only so much people can take. Who knows where this city will be in the next year or so. It took almost two years for the city to experience a bubble burst, a lot later than the rest of the country. And I read articles about the abandoned homes and squatters in places like California and Florida etc.

[scatman]

What makes it worse is the fact that the prices are not falling steep enough for any movement.

A single-family house across the street from me was put on the block at $450K. Two years later, it's still on the block........at $425K!

Now, as for the article, let's just keep it real. Back in the day, discriminatory lenders didn't touch the hood. Now, you have Don-King lending via the Brotha or boriqua broker down the street. There's also an observation that the banks sub-contracted these brokers in order to cover themselves from subprime-steering lawsuits (a Black face could make a transaction discrimination-proof!).

And that's in addition to high income people of-color who got subs, even though they were eligible for conventional loans.

[passdoubt]

Well most New Yorkers rent, especially poor people, so they aren't getting foreclosed on-- maybe their landlords are, but not at such high rates as in places where home ownership is more widespread at all ends of the income scale.

Of course Southeastern Queens would fit the bill for being an area with a lot of single-family homes yet pretty working class.

But I think New York is better off than most cities in this respect, because for the most part you have to be pretty well off to own a home here in the first place.