We all know that a lack of knowledge can lead to poor choices, uninformed decisions that lead to long term consequences. What is even worse is when businesses choose to prey on those that are uninformed for their own gain. From what I read today, there was a report released by the United for a Fair Economy (UFE) advocacy group that stated subprime mortgages, home loans issued to Americans with scant finances, were “ruthlessly hawked and that a “solid majority of subprime loan recipients were people of color.”

It is sad that in the year 2008, that we are continuing to deal with the issue of minorities being taken advantage of instead of being helped and educated. It is evident that this crisis has ruined communities as well as families and is continuing to do so. Is there a light at the end of the tunnel? Who could actually say because mortgages are continuing to adjust for those that got the adjustable rate mortgage. Some will be fortunate to be able to qualify for the FHASecure but everyone will not fall into this category.

For those that do not qualify for FHASecure, they have to weigh what other options are available. The report estimated the total loss of wealth “for people of color” including Latinos to be between 163 and 278 billion dollars for subprime loans taken out during the past eight years. What does that say to you? To me it says let's keep the poor, poor and the wealthy wealthier thinking they will not know the difference. Surprise, this is out in the open and the nation knows what has happened.

As a matter of fact, some of these same lenders probably are no longer in business because they could not operate in this morning. So it affected them as well as the people they were taking advantage of. I do believe and advocate more should be spent on educating people prior to home ownership so that it is a benefit for all parties and not just the lender.

The effect this is having on communities is astronomical. Having a lot of foreclosures in a neighborhood also brings down property values. I have seen houses staying on the market as long as a year or more without even a showing. Then owners are taking their house off the market. I have heard that some of the houses that were foreclosed on being absolutely torn apart when the new owner moved in. They spent a lot of time repairing the homes to make them livable which ends up costing money.

Something I recommend for anyone in the housing industry, whether realtor, mortgage broker or even housing counselor increase the amount of information you are giving to your client. This is going to make the difference between a dream for them or a nightmare. I continue educating people as often as I am asked. I do not want anyone struggling and lose their dream of home ownership. Sure at the end of the day it is their choice, but have you done all you can do to give them solid information. This could be someone in your family seeking information.

Dr. Taffy

Post from: FHA Mortgage Center Blog

American Nightmare becomes reality for Minorities

Read more ... http://fhamortgagecenter.com/fha-blog/american-nightmare-becomes-reality-for-minorities/.