Presentation on theme: "Frayser Community Development Corp. Focus on rebuilding the highest foreclosure neighborhood in Memphis."— Presentation transcript:
Frayser Community Development Corp. Focus on rebuilding the highest foreclosure neighborhood in Memphis
History of Frayser On Sept. 19, 1877 a Post Office was established on the Paducah & Memphis line. At that time The Point was very sparsely populated with a combination of small farms and summer estates owned by rich Memphians. On Sept. 19, 1877 a Post Office was established on the Paducah & Memphis line. At that time The Point was very sparsely populated with a combination of small farms and summer estates owned by rich Memphians. Dr. J. R. Frayser, a prominent old Memphis physician, was one of many wealthy Memphians who invested in property along the new railroad to the north and built a summer home to use as a haven when fever epidemics struck Memphis. His land was at the intersection of roads leading to Big Creek (Millington Rd.) and Raleigh (Whitney-Dellwood), across from the small railroad depot that become known as Frayser Station.
Continue … Frayser is the western tip of a peninsula created by the Loosahatchie and Wolf Rivers as they converge into the Mississippi River just north of Downtown Memphis.
About Frayser CDC The Frayser Community Development Corporation was established in January 2000 to revitalize the once suburban neighborhood. The extremely high rate of foreclosures was quickly discovered. Then it soon became very obvious that foreclosures were not only devastating to families, but also to the streets and neighborhoods. Foreclosed houses remain empty for an ample amount of time and seems to be an ongoing downfall. Frayser CDC concluded that it was an imperative to better understand causes and solutions of foreclosures in its community Foreclosed houses remain empty for an ample amount of time and seems to be an ongoing downfall. Frayser CDC concluded that it was an imperative to better understand causes and solutions of foreclosures in its community.
2005 Neighborhood facts 4.8% of the owner occupied homes in the neighborhood were foreclosed in 2005. Sale prices have declined over the last several years and are now slowly rising. Equity levels are extremely low 48% of the loans made are sub prime loans. (CCBANA/CDCOUNCIL 2004 LENDING STUDY) It has been found that Frayser foreclosure rates in 2005 ran about 10½ times the national average. (The Originator Times 3/06)
Foreclosure facts Foreclosures can hurt neighborhoods by: Foreclosures can hurt neighborhoods by: Leaving houses abandoned. Decreasing the neighborhood comparables/values. Causing banks to loose out on money. Allowing investors opportunities to penetrate into neighborhoods. Causing heart ache and pain to families. Increase in bankruptcy filings
Situations that cause foreclosure Lack of market education to consumers. Predatory lending. Misuse of sub prime market. Job lost. Divorce, separation, and death in families. High debt to income ratio. Other types of lending such as: payday and title loan companies.
FCDC studies Taken into consideration many of the solutions that can be accomplished to overcome this phenomenon FCDC has to look into the numbers deeply and plan to move forward to decrease the high foreclosure rate. Abandoned houses in the area. Published foreclosures Actual foreclosures Housing values and sale prices Originating loans
2005 vs. 2006 window survey An annual survey to take note on the amount of abandon homes of the whole Frayser area. See what neighborhood in concentrated with abandoned houses Push the demolitions of the worse houses Begin to notice a trend on investor related neighborhoods Push to boarding of abandoned homes to keep safety in tact Try to develop solutions
IN 2006 there were a total of 638 properties found. 73 open properties 21 Demo Propoerties
Responding cont… Responding cont… Home Ownership Training Trying to reach consumers before they enter into the market. Educate them on the market and all available resources to them Mortgage Default Counseling Assisting those in default, with trying to save their homes Money & Debt Management Counseling If consumers are better able to handle their DTI then they are more likely NOT to fall into the category of foreclosure Credit Counseling Consumers with a better credit history are able to receive the better loans and can avoid the subprime market.
Foreclosure in Frayser In 2005: 1066 home sales 731 foreclosure listings 477 actual foreclosures 34.7% of listed foreclosures found some type of relief out of it. HUD houses fell to about 23% from the previous year of 40%, that concludes that more homeowners entered into sub prime market, conventional, or fell in the hands of predatory lending.
What we found In 2005, looking at loans originated over the past twenty years 48.8% of homes foreclosed were originated between 2000-2004. Given that information we conclude that the epic has hits roughly homeowners within the first four years or less of owning a home. 1.1%1980-841.1%1980-84 2.5%1985-892.5%1985-89 6.8%1990-946.8%1990-94 24.9%1995-0024.9%1995-00 48.8%2000-0448.8%2000-04 2.9%20052.9%2005 13.6%Originated year unknown13.6%Originated year unknown
Responding to the foreclosure rates We are making efforts to saturate the area with many techniques to help decrease the foreclosure rates with all our available resources. We are aware that we can’t make this epic obsolete. However we can begin to work harder to understand it and begin to decrease the trend even more as the years come.