In the 1960s, the bustling community of North Lawndale, on Chicago’s West Side, was a pilot community for interracial living. A handful of middle-class African Americans bought homes there on “contract”—that combined the responsibilities of home ownership with the disadvantages of renting. In a contract sale, the buyer accrued no equity, and if he missed a single payment, he would immediately lose his down payment, all his monthly payments, and the property itself. Unscrupulous sellers sold at inflated prices, then the families were evicted when they missed a payment. Another family would buy on contract, and the cycle fueled by…