ABSTRACT
For several years, much of metropolitan America has been engulfed in a foreclosure crisis that was initially triggered by risky subprime lending and real estate speculation that contributed to the financial crisis that shook the economy in 2008 and more recently by homeowners unable to meet their obligations because of job losses and financial problems related to a severe recession and weak economic recovery, along with trigger events such as medical expenses, divorce, or the death of a spouse, among others. It is estimated that several million homeowners may eventually lose their homes, and with a glut of unsold vacant and abandoned homes, many homeowners have seen sharp declines in the value of their homes (Center for Responsible Lending 2011). Those most affected, about one-fifth of homeowners, find themselves underwater (i.e., the amount due on their mortgage loan(s) exceeds the current market value of their house). The Sunbelt states of Arizona, California, Florida, and Nevada have seen the highest number of foreclosures. The city of Las Vegas, Nevada, has been the hardest hit major city in the United States. Before that, older Rustbelt cities like Baltimore, Buffalo, Cleveland, Detroit, and Philadelphia saw foreclosures and abandonment rise dramatically, devastating entire neighborhoods.
