Racial restrictive covenants are one of the many reasons blacks are not able to receive loans and purchase homes. This practice originated in 1917 as a reaction to the Great Migration of Southern Blacks and the court ruling in the Buchanan V. Warley case. Racial restrictive covenants hinder a group of people, typically blacks, from purchasing a home in a predominantly white community or a populous black community. The bank will deny a family a loan if their new home is in either of the communities stated above; however, due to legal reasons bankers will tell the applicant(s): the area has a high crime rate, they will not be afford it in upcoming years, the bank will not loan more than ten cents to the area because it is run down, and …show more content…
Modern families whose ancestors were around when racial restrictive covenants were legal have been cheated of their wealth. Racial restrictive covenants were meant degrade blacks and minorities. Prosperous black and minority communities are being ignored and marked in red by the state, county, and bank. Communities such as Old River Road have had no help from the state, county, or bank for decades. Old River Road has prospered on its own for decades; however, due to immense amount if minorities living on the road it has been marked in red and abandoned. Old River Road does not receive the same treatment as other communities the state, county, and bank fund. The “Red Zone” known as Old River Road will not receive any loans from the bank due to it having “high crime rates” according to