Distressed and Dumped: Market Dynamics of Low-Value, Foreclosed Properties during the Advent of the Federal Neighborhood Stabilization Program

The foreclosure crisis resulted in the accumulation of lender-owned homes in many neighborhoods. But little is known about these homes after they enter lender ownership. This article examines the dynamics of foreclosed properties in Fulton County, Georgia. It does so in the context of the federal Neighborhood Stabilization Program (NSP). Just when NSP was getting under way, lenders began to rapidly sell low-value foreclosed properties. A large majority of the low-value homes were purchased by small investors, and purchases of foreclosed homes in low-income neighborhoods were dominated by investor-buyers. The article also discusses policy implications of these findings.