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Immigrant Families Hit Hard by the Mortgage Crises
By: Rebecca Castro
Many news headlines warn about the foreclosure crises and how it has affected the economy. Unfortunately, the “story” and the urgency normally stop there. For thousands of Hispanic families a foreclosure is more than “losing your home” it means losing the “American Dream”.
Immigrant families from all over the world come to the United States to live the “American Dream”. This dream normally involves a combination of fairly paid work, education, home ownership, and entrepreneurship. To take away one of those building blocks or add one at the wrong moment will send the dream tumbling fast. There is no doubt that losing a home to foreclosure is a difficult situation for any family. However, there are options available for those who have established roots in the U.S. Just this month one of the largest lenders in the U.S. released a program to finance buyers who have recently had mortgage trouble. The buzz in the industry is that more banks will soon offer the same type of programs for credit scores as low as 500. This is great news for the average homeowner looking for foreclosure alternative options. But, is it too late for the struggling Hispanic immigrant?
The Home Mortgage Disclosure Act Data indicates that the second largest foreclosure rate in the Inland Empire is to Hispanic/Latino families. To understand the current situation, we must explore the cause of this effect. In 2005 at the height of the market, the Hispanic community was more the 52% of the borrowers financing high cost conventional loans. These were the no-document, stated income, no-money down, high interest loans that were sold to a community that easily trusted in the “American Dream”. Because of the language barrier, many never questioned or investigated the pitfalls of these types of loans.
What resulted from the predatory lending and astounding home prices is the boom that crippled a community who was heavily dependent on the real estate market. Many loans were given as adjustable rate or balloon payment loans. A borrower would normally get a low initial payment or a “pick-a-payment” situation. If only the minimum amount continued to be paid, the principle balance continued to increase. Just around the same time that home prices were too high, people stopped buying, loans started to adjust, and cash out re-fi loans had soared. Then just like that BOOM…the immigrant labor workers were the first and hardest hit with unemployment and mortgages payments that seemed to double over night.
Faced with families to support sometimes both in the U.S. and extended family “back home” many immigrants are left with little options. Many times Spanish speaking home owners have turned to the wrong place for answers. Many families fall victim to fraud and are unaware until it is too late that they have lost their home. In other cases the home owner may feel threatened or scared and do nothing. In both cases, because of unemployment and lack of resources, more often we are seeing parents uprooting and moving their children back to a country they don’t know. The ones who take this rout not only end the “American Dream” for themselves but for their children as well. Many of these children have been born and raised in the U.S. with dreams of their own.
After knowing the affects a foreclosure can have, it is refreshing to hear about a team of professionals that decided to make a difference. “We answer questions for all home-owners free of charge”, said Leonard Bernal, Broker. The groups of Real Estate and Legal professionals that participate in this free community service are bi-lingual in Spanish and English. They answer questions related to refinancing, loan modifications, government programs, bankruptcies, foreclosure alternatives, protecting yourself from fraud, and what to expect if your home has already gone to foreclosure. Their website www.TheRealAnswers4u.com and has information and resources free to homeowners.
The most important thing to remember in a distressed property situation is to take in all information for all of your options. Many times because of the emotional aspect it is easy for con-artists to pray on a homeowner’s desperation. In most cases, if a home-owner gets the right help early enough, they will have more options to choose from. Action is the first step toward change. Encourage those you know struggling with this issue to make a difference in their life.
http://www.TheRealAnswers4u.com »
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Tags: Immigrant Families Hit Hard by the Mortgage Crises
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