Wipperfurth, AdamHawthorne Neighborhood Council2018-05-042018-05-042009https://hdl.handle.net/11299/196309The number of foreclosures in the Twin Cities has been on the rise. One of the hardest hit areas of the metro region is north Minneapolis. According to Elizabeth Ryan, the Director of Housing Policy and Development for the Department of Community Planning and Economic Development (CPED), foreclosures in the Hawthorne and Jordan neighborhoods of north Minneapolis will jump from 700 in 2009 to 1,500 in 2009. Foreclosures can affect families in a number of ways. The most obvious effect is the direct loss of a family's home. While some are able to move into a cheaper apartment or a relative's home, sadly, others become homeless. One's credit rating may also be negatively affected, making it hard to obtain future loans or even find or retain employment. The trickledown effect of foreclosures can also impact a community. Property values typically decrease near foreclosed properties. Municipalities must also allocate more revenue to items such as policing, fire protection, inspection, demolition, social service, legal action, and the overall management of the foreclosure process. This project centered on determining how certain loan arrangements have affected different areas of north Minneapolis. Understanding that adjustable rate mortgages (ARMs) have some of the highest default rates, the main purpose of this project was to create a database that could be used to track ARM loans. Unfortunately, for many in Minneapolis and especially the more impoverished north Minneapolis, ARM loans were not the best loan product and these borrowers and the surrounding community are or will be experiencing financial hardship because of their loan choices. One aspect of this crisis that residents intuitively knew, which has also been documented, is that north Minneapolis received a disproportionate number of ARMs, and that many of these riskier loans had a higher rate of default. The project partners wanted to use this knowledge to reach people on a house-by-house level.enAfrican AmericansBlackslow incomeNorthside Seed Grant (NSG) ProgrampoorpovertyReport