Discrimination by Banks in the Maintenance of Homes in Communities of Color Remains a Barrier to Recovery

Since the beginning of the housing crisis in 2008, approximately 5.8 million homes across the country have been lost to foreclosure. A significant number of these homes completed the foreclosure process and were repossessed by the bank, becoming bank or lender owned (these properties are also referred to as Real Estate Owned properties or REOs). Once they become REOs, they are owned by the banks and maintained by a bank’s contracted vendors. These REOs often remain vacant for many months or years before being sold and can create blight and other negative outcomes for neighborhoods when not managed and maintained responsibly.