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In a new study, the Center for Responsible Lending analyzes the demographics of the foreclosure crisis, and finds that foreclosure has disproportionately impacted black and Latino homeowners. All in all, a home owned by a black family is 76 percent more likely to go through foreclosure than a home owned by a white family. And the CRL study shows worrying evidence that the foreclosure crisis will wipe out a generation of wealth in communities of color and exacerbate the existing income and equity gap between white and non-white families.
First, some basic statistics. The CRL estimates that 2.5 million homes were foreclosed upon between 2007 and 2009 — the “vast majority” of which were owner-occupied homes with mortgages originated between 2005 and 2008. Once the foreclosure crisis is complete, as many as 10 million homes will go through the foreclosure process, which has cut across all demographic and income groups, from trailers to McMansions, from homes with subprime loans to homes with vanilla mortgages.
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