Homeowners are crumbling under the pressure of Boston foreclosure homes. Boston has been facing foreclosure crisis for a couple of years. This is a critical moment for all homeowners in the state. It looked as if things were going to go out of hand. That’s when the Mayor’s office stepped in to do their best to control the situation. Patricia Canavan, who is an adviser in the Boston Mayor’s office, is working on a plan. She has made an official statement.
What She Says
With the rise in the number of homes in the Boston foreclosure listings, Canavan believes there is an option. Reclaim neighborhoods that have been left empty due to the ever growing foreclosure crisis. She spoke at the Federal Reserve Bank of Cleveland Community Development Policy Summit in Cleveland, Ohio. She has urged banks, financial institutions, and lenders to make efforts for refinancing as many loans as possible so that foreclosures can be stopped.
According to statistical reports taken out by the Boston Mayor’s office, the amount of sub-prime loans taken by people in Boston is quite high and 65% of those loans were taken out by people the minority neighborhoods or who belong to the modest income group. A major part of the 65% is already in foreclosure. Like other parts of the country, the wave of foreclosure has not spared homeowners in Boston as well. In fact, in the last two years, the rate of foreclosure has increased considerably. In 2006 the total number of Boston bank owned homes was just 64 while 2007 saw an alarming increase with 704 foreclosed homes and as of date (2008) the number is 774 and counting.
What’s the Impact?
The immediate impact of foreclosures includes homeless families, empty neighborhoods, and increase in crime rate. In order to fight the negative aspects of foreclosure on various communities, the Mayor of Boston, Tom Menino has created a tactical team for foreclosure intervention. The team has weekly meetings so that they can work out an effective neighborhood stabilization program.