A house bought at 204,000 sold for 60,000 in a black neighborhood

Evidence

A short sale typically means the bank agrees to let the borrower sell the property for its fair market value, which is less than the amount owed on the mortgage. In return, the bank does not come after the homeowner for the difference. John bought the Feldwood Road property for 204,000 in 2004, and sold it for 60,000 in 2014. He took no deduction on the loss, of course, and had a three-year flag on his credit report, preventing him and his wife from making any other significant purchases before the mortgage default cleared. — Dorothy A. Brown, Getting to Reparations, 1261

Categorization

• XREF: The steep depreciation contradicts standard assumptions of housing as a wealth-building asset, connecting to broader critiques of homeownership as a safe wealth vehicle.