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Foreclosures in Twin Cities and racial implications

I read an article from the www.pioneerplanet.com entitled “These homes were lost . . . and that’s just the beginning.? from 09/24/06.

The article talks about the increased number of foreclosed houses in the Twin Cities area and that most of those houses are showing up in predominately minority neighborhoods. The concern is that home ownership is already low in these areas and it’s escalating at a rapid pace.
They say that racial minority groups are more likely to get “subprime? mortgages which seem like a great deal to begin with but end up being more expensive and risky for borrowers in the end. Two University of Minnesota studies examined this:

Professor Jeff Crump “estimated that African-Americans in the Twin Cities are 34 percent more likely to receive subprime mortgages than whites, and Latinos are 13 percent more likely.?
Eric Myott with the Institute on Race and Poverty, “concluded that African-Americans in the Twin Cities were 164 percent more likely than whites to get a subprime loan and that people of color in general were 78 percent more likely.?

These examples relate really well to our readings for this week. As Putnam points out homeowners seem to have more social capital because they are in a place for a longer period of time. It could also be argued that they have more of a vested interest in their community and therefore higher social involvement. He also says that the more highly segregated an area the less social capital there is. If families of color are less likely to own homes in their neighborhoods, and less families appear to be able to maintain home ownership then there will be less social capital in areas where, it could be argued, social capital is most desperately needed.