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Date: April 30, 2024 Tue
Time: 2:06 am
Time: 2:06 am
Results for mortgage foreclosures
2 results foundAuthor: Ellen, Ingrid Gould Title: Do Foreclosures Cause Crime? Summary: The mortgage foreclosure crisis has generated increasing concerns about the effects of foreclosed properties on their surrounding neighborhoods, and on criminal activity in particular. There are a number of potential ways in which a foreclosed property might increase the payoffs to committing crime and decrease the likelihood of being caught. Reduced property maintenance by foreclosed owners may serve as a visual signal of increasing disorder and decreased monitoring by neighborhood residents. Residential turnover precipitated by foreclosure may further weaken the informal social networks that prevent crime. Vacant foreclosed properties may provide opportunities for more serious and lucrative crimes. Using point-specific, longitudinal crime, foreclosure, and other property data from New York City, this paper determines whether foreclosed properties affect criminal activity on the surrounding blockface – an individual street segment including properties on both sides of the street, looks separately at how foreclosures affect different types of crime, examines whether foreclosures that result in long-term bank owned status have larger impacts than foreclosures that are resolved by a sale to a new owner, and compares the marginal effect of additional foreclosures across neighborhoods with differing concentrations of criminal and foreclosure activity. We find that additional foreclosures on a blockface lead to additional violent crimes and public order crimes. These effects are largest when foreclosure activity is measured by the number of bank-owned properties on a blockface. We find that effects are largest in neighborhoods with lower levels of crime, and effects appear to be heightened when foreclosure activity is concentrated. Details: New York: Furman Center for Real Estate and Urban Policy, New York University, 2011. 42p. Source: Internet Resource: Accessed September 13, 2011 at: http://furmancenter.org/files/publications/Ellen_Lacoe_Sharygin_ForeclosuresCrime_June27.pdf Year: 2011 Country: United States URL: http://furmancenter.org/files/publications/Ellen_Lacoe_Sharygin_ForeclosuresCrime_June27.pdf Shelf Number: 122727 Keywords: HousingMortgage ForeclosuresNeighborhoods and CrimeUrban Areas |
Author: Ellen, Ingrid Gould Title: The Impact of Foreclosures on Neighborhood Crime Summary: In the last few years, mortgage foreclosures have uprooted millions of households, and many have expressed concern that the foreclosed homes they leave behind are increasing crime. The three papers that emerged from our project study this question by examining whether and how elevated foreclosures affect different types of crime in the immediately surrounding area, in five cities around the country. In our first paper, we use point-specific, longitudinal crime and foreclosure data from New York City to examine how foreclosures affect crime on the same blockface- an individual street segment including properties on both sides of the street. We compare changes in crime on blockfaces after homes on the blockface enter foreclosure to changes on other blockfaces in the same neighborhood that did not experience foreclosures during the same time period. To bolster our confidence in a causal relationship, we also estimate regressions that control for future foreclosure notices. These future foreclosures cannot affect crime today, but they help to capture unobserved differences in trends between those blockfaces where foreclosures occur and those where they do not. In brief, while much of the association between foreclosures and crime is explained by both occurring on similar blockfaces, we find that marginal foreclosures on a blockface lead to a small number of additional violent and public order crimes. Our results are robust to both OLS and negative binomial estimation. As expected, effects are largest for foreclosed properties that go all the way through the foreclosure process to an auction. The effects of foreclosure extend to crime on neighboring blockfaces, but these effects are attenuated. When estimating threshold-level models, we find that foreclosures have a larger effect on crime after there are three foreclosures on the block. In our second two papers we focus more on identifying mechanisms and also extend our analysis to four other cities to test for generalizability. Our second paper, focused on Chicago, finds similar results as we did in New York City: an increase in the number of properties that receive foreclosure notices appears to increase total, violent, and public order crime on blockfaces in Chicago. In addition, our estimates suggest that foreclosures change the location of crime. They increase crime that occurs inside residences, but if anything reduce crime outside on the street. Foreclosures are also associated with substantively large (but weakly estimated) effects on crime within vacant buildings. Finally, increases in foreclosures are associated with increases in the number of 311 calls made to the City of Chicago about problems such as vacant buildings, rodents, graffiti, and other types of physical disorder increase in the following quarter. This suggests that the crime increase may come from an increase in physical disorder. In our third paper, we explore the relationship between foreclosures and crime in five cities, Atlanta, Chicago, Miami, New York, and Philadelphia. Overall, we find that properties banks take over through foreclosure (real estate owned or REO) are associated with higher crime both in the census tract and on the blockface. However, once we control for the number of properties in the foreclosure process (which we can do in three cities), we find no evidence that the presence of REO properties increases crime. Rather, it is the properties on the way to foreclosure auctions that appear to elevate crime. In other words, the crime increases caused by foreclosures appear to be driven by the reduced maintenance and investment of 'limbo' properties that are in transition to bank ownership. Collectively, these results suggest that local law enforcement and housing agencies should track foreclosure notices and monitor properties as they go through the foreclosure process, as their owners have little incentive to maintain them. Details: Report submitted to the U.S. Department of Justice, 2015. 45p. Source: Internet Resource: Accessed September 21, 2015 at: https://www.ncjrs.gov/pdffiles1/nij/grants/248653.pdf Year: 2015 Country: United States URL: https://www.ncjrs.gov/pdffiles1/nij/grants/248653.pdf Shelf Number: 136845 Keywords: Economics and Crime Housing Foreclosures Mortgage ForeclosuresNeighborhoods and CrimeProperty Crimes Urban Areas and CrimeVacant Properties |