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Is HUD guilty of REDLINING

By
Real Estate Broker/Owner with Top Priority Realty, LLC

Is the government agency,Housing and Urban Development(HUD), who so proudly shouts "Equal Opportunity" guilty of redlining and discrimination?

 What is REDLINING? Mortgage bankers and lenders are familiar with this term.   As defined by Wikipedia  Redlining is the practice of denying, or increasing the cost of services such as banking, insurance, access to jobs,[2] access to health care,[3] or even supermarkets[4] to residents in certain, often racially determined,[5] areas. The term "redlining" was coined in the late 1960s by John McKnight, a Northwestern University sociologist and community activist.[6] It describes the practice of marking a red line on a map to delineate the area where banks would not invest.

Up until late November or early December HUD withdrew the $100 down incentive program for HUD Owned Properties or better known as HUD HOMES in Colorado. No one seems to know or will say exactly when the program was pulled. The $100 down program helped  literally hundreds of first time homebuyers and other owner occupants purchase foreclosed properties that were turned over to HUD.

What does this have to do with REDLINING? The $100 down program is still active and being promoted in 9 other states and Puerto Rico and the Virgin Islands.   Currently in Colorado there are over 1300 HUD HOMES or as HUD would prefer them referred to as "HUD Owned Properties" listed and for sale. Over 500 of these homes are priced under $100k and 700 were priced between $100k and $200k.

What do you think? Has HUD drawn a red line around 41 states saying they would rather sell the foreclosed homes that are now HUD Owned just in 9 states and Puerto Rico and the Virgin Islands? What, in the Department of Housing and Urban Development, makes the 9 states and two territories special? Why should HUD Owned Properties be harder to qualify to purchase and acquire financing in 41 states?

 

 

 

 

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John Pusa
Glendale, CA

Tom - Thank you for the information on the activities of HUD.

Jan 14, 2011 06:36 AM
Tom Hoffman
Top Priority Realty, LLC - Brighton, CO
Broker/Owner

Hi John, There are lots of changes going on with HUD in Colorado. We now have three management companies instead of one and all are out of state.

Jan 15, 2011 08:26 AM