BrokerageIndustry News

Study finds disparity in marketing, maintenance of REOs

Lenders accused of violating Fair Housing Act

An evaluation of more than 1,000 homes repossessed by lenders in nine markets found properties in African-American and Latino neighborhoods were not maintained or marketed as diligently as homes in predominantly white neighborhoods.The National Fair Housing Alliance said real estate owned (REO) properties in white communities "generally appeared inhabited, well-maintained and attractive to real estate agents and homebuyers," while foreclosed homes in minority communities were "more likely to have overgrown yards littered with trash, unsecured doors, broken windows, and indications of marketing as a distressed sale."The "inferior way in which banks maintain and market their REO properties in communities of color actually changes the character of and serves to degrade the quality of life in these neighborhoods," in violation of the Fair Housing Act, the group said in a 49-page report detailing the findings of its investigation.The National Fair Housing Allia...

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