The Double-Edged Sword of Borrowing: Increasing Costs of Homeownership and the Roles of Property and Loan Flipping in New York City
[Excerpt] Introduction For many low- and moderate-income homeowners, home equity represents their single largest asset. 1 Unfortunately, unscrupulous lenders and real estate sales people are targeting low-income residents in fi nancial distress to profi t from rising house values. They are offering equity-stripping refi nancing, selling over-appraised homes to fi rsttime buyers, and offering fi nancial assistance that can place unaware homeowners in serious jeopardy of default, foreclosure, or eviction.
Cornell Real Estate Review
Volume & Issue:
New York City; flipping; homeownership; financial distress; property tax; home purchase lending; mortgage lending; homeownership counseling; predatory lending; low-income
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