Foreclosures Hammering Providence Neighborhoods

In Providence, Rhode Island, a recent story in The Providence Journal describes the toll being taken by some of its neighborhoods as a result of the run up in prices caused by the speculators and the subprime mortgage lenders that were lending money to anyone who could breathe, followed by the crash in prices that has resulted in foreclosures, vacant homes, and vandalism. The story begins:

• The new property owners in some neighborhoods here mark their turf with padlocks, plywood and messages such as the one scrawled on a front door in Olneyville: “Copper Gone.”
• Vacant houses have always been easy prey for vandals, no less so when the owners are giant banks, companies representing Wall Street investors.
• Block by city block, foreclosures are scarring the landscape in neighborhoods such as Olneyville, Elmwood and the West End, raising fears that the deteriorating real-estate market could hurt property values and undermine years of urban redevelopment efforts.

The story features the recent history of one area home:

• "In January 2004, the listing for 25 Steere Ave. read: “BEAUTIFUL HOME WITH VINYL SIDED AND PRIVATE YARD. FINISHED BASEMENT WITH SEPARATE ENTRANCE. THIS IS A MUST SEE.”"

After being sold for $150,000; then resold for $240,000 a year an a half later, the home ended up in foreclosure, abandoned, ransacked by vandals, boarded up, and the public records now list Deutsche Bank as the owner of record (presumably as trustee for certificate holders in a mortgage pool who actually own the home and who, like the neighborhood, are also getting hammered). The home is currently listed for sale at $134,900.

• "The broker listing now reads: “This property has a lot of potential. Priced to sell AS IS condition. Copper missing. Other work needed … Will need rehab loan, private financing or cash.”"

Reportedly, the home was twice broken into, thieves smashing windows and ripping out the copper pipes. After the second break-in, the real estate agent (no doubt to dissuade any further break-ins) scribbled “Copper gone” on the door. For more, see Foreclosures threaten Providence neighborhoods’ vitality.

In related stories, see:

• Plywood, padlocks replace homeowners in Providence ("As more padlocks and plywood dot the landscape of neighborhoods ..., local residents and elected officials fear the foreclosure crisis could undo years of urban redevelopment efforts.") (Boston Herald - 10-15-07)

• Neighborhoods at risk (The Providence Journal - 10-15-07).

For a prior Providence post, see "Plywood Board" Gains In Popularity As "Window Treatment" In One Rhode Island Neighborhood.