Investors purchased 1 in 4 affordable homes, report finds
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Neighborhoods like Frayser in Memphis are especially impacted by this trend. According to the Frayser Development Corporation, 93% of all the homes sold in March were purchased by investors.
“Investors have been responsible for most of the purchases of homes in Frayser,” said Steve Lockwood, the former executive director for the Frayser Community Development Corporation. “On the one hand, they have reduced numbers of blight. However, they have elevated (rent) prices. And they’ve dramatically lowered the percentage of owner occupants.”
Lockwood told FOX13 that historically, predatory lenders have all but robbed families of their homes.
“Frayser in in previous decades was the epicenter for predatory lending,” Lockwood said. “So, the number of foreclosures that happened in Frayser were just stunning and frankly, criminal. Hundreds of African-American families lost their homes, lost their equity due to predatory lending.”
The current executive director of the Frayser CDC told FOX13 they have a mission of helping families get into and keep their first homes.
“I don’t think there’s any real comparison on how much (investors) care compared to an individual that is in the community that breathes in it, lives, shops and goes to school,” said Darrell K. Scott, the current executive director. “When you’re just focusing on being an outside investor, you’re looking at how much you’re able to turn a profit.”
Frayser families who need assistance can call the Frayser Community Development Corporation at (901) 354-9401.
For potential first-time home buyers across the city, FOX13 has linked more resources below.
FIRST-TIME HOMEBUYER RESOURCES:
- City of Memphis Down Payment Assistance
- Shelby County Down Payment Assistance
- Trustmark Home Advantage Loan
- The Housing Fund Down Payment Assistance
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