A Profile Of The Mortgage Crisis In A Low-And-Moderate-Income Community
This paper assesses the impact of the mortgage crisis on Chelsea, Massachusetts, a low- and moderate income community of 35,000 adjacent to Boston. After years of rapid growth, house prices started falling in 2005. According to the repeat-sales indices, by the end of 2009 prices had fallen by as much as 50 percent from their peak. Foreclosures have soared and lenders have repossessed or allowed short sales on more than 330 homes, resulting in a forced exit of at least one in 30 of the town's households. A large fraction of the foreclosed properties were two or three-family homes, so the number of households affected by the crisis undoubtedly extends beyond the number of foreclosures. But there is some positive news.