Sunday, January 27, 2008

Sometimes the House Game Remind Me of the Crack Game

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Once upon a time there were low interest rates.
Because of this, banks decided to make loans to people.
These people turned around and bought $400K houses
when they could only afford
$200K houses.

The banks major justification for signing off on these loans,
"everyone else was doing it."

Did I mention that they did not check pay stubs on
those stated income loans?

Now the government is set to give folks a "stimulus

Wasn't the government complicit in these loans being
made in the first place?

Isn't it fraud to benefit from folks being confused by exactly
Is this class action worthy seeing as the predominant
number of people who lost were Black and Latino?

I don't know. That's a question for the government,
the US Attorneys office and the NAACP.

Now I just found an article discussing how a
disproportionate number of people who are losing their
homes to foreclosure are Black and Latino, and in Baltimore
they are Black, single mommas.

At Vixxen Hair Salon, the main topic of conversation has always been money. But since last August, Anjanette Booker, the owner, has noticed a new focus. “Now it’s money and foreclosures,” Miss Booker said.

For each of the last four years, more than half of the foreclosures in this neighborhood have been homes owned primarily by women, according to an analysis of public records by the Reinvestment Fund, a nonprofit community development organization.

The foreclosures threaten the neighborhood’s fragile stability. And they highlight a broader dimension of the housing meltdown: subprime mortgages, which are driving the foreclosure rate, have gone disproportionately to women.

Single women have been among the fastest-growing groups of homeowners in recent years, and in Baltimore they accounted for 40 percent of home sales in 2006, twice the national average, according to the National Association of Realtors. Nearly half of these mortgages were subprime, National Community Reinvestment Coalition found.

On one hand I feel that you know that when you borrow
from the Dope Man/Banks you have to pay him back.
No if, ands or buts. So, if you borrowed
more than you could afford. Then tough.

Remember my credit is the devil post. We talk about
credit and its perils here all the time at Model Minority.

On another level, I know that
there is a connection between
the home ownership gap, the achievement gap, the savings gap
and ultimately the wealth gap.

Add this to what we all know about 40 acres and a mule,
Katrina and Urban Renewal and completely I get what
would compel someone to buy a house with an ARM loan.

Houses involve the law, emotion, family and identity.

“When I bought my house, it was the American Dream,” said Kue McIntyre, 33, a single mother of three who is scrambling to avoid losing her row house, on which she defaulted after losing her job. “Now I need to save it for my boys. If it was just me, O.K., I’d have to give up my first home. But it’s different when you have it for the kids. When they turn 18, I want this to be theirs.”
She hit the nail on the head when she said, I just wanted to have
something to leave to her sons, who can blame her?

Owning property is significant, in a way that I can't describe,
to people
who have once BEEN property.

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What would you do if your house was being foreclosed?


Are the mommas wrong?

The banks?

All of us for not
anticipating it?


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10 comments:

Nexgrl said...

Please delete that obvious spam on your in your comments section.

If I was facing foreclosure, I would first try to sell. I actually live on a desired block, so I don't think it would be hard.

I don't think the Moms are wrong, but I do wonder if the process was fully explained to them. I for one drove the mortgage brokers and my real estate broker a little batty the first time around because I actually read through all of that mess.

I think the banks and the brokers were just looking at the volume of loans. I also know of brokers who knowingly deceived lending institutions. You know fake wage stubs, or altered.

I don't know about the rest of the country, but in the Bay Area, it's a mixed bag. There are areas of suffrage and then others were it doesn't seem as if anything has changed.

M.Z. said...

Anytime you put someone in a position to fail, your wrong. Especially when (as mentioned above) the lenders use deception to get these people things that would be otherwise obtainable.

The mommas aren't wrong for trying, but they gotta know what they can handle going in.

T DOT said...

Owning property is significant, in a way that I can't describe,
to people who have once BEEN property.


==============================

This is why i've RSS'd.
For sentences like that.
Spine Tingling.

M.Dot. said...

nexgrrrrl....That comment was really getting on your nerves hunh?

Aunt Jackie said...

My ex works in financing and he states the clear connection between 9-11 and subprime lending. Specifically in New York but all over the place...

Brokers who lost their jobs in a market that was affected by the busted Dot Com bubble, the Enron Scandle, and ultimately 9-11 still only knew how to do one thing..sell so they started selling money.

He jumped into Lending as many of the old firms restructured themselves as lenders/bankers.

These are the same dudes who were doing blow, screwing hookers in Rio selling folks faulty stocks mind you, so it didn't make then any never mind when they got to selling bad loans to folks who needed to believe in the American Dream.

Now they are currently selling reverse mortgages and school loans to pay the bills..money is always for sale!

M.Dot. said...

..money is always for sale!
======

Game for free, ma.


These are the same dudes who were doing blow, screwing hookers in Rio
========
so egregious.

Sound like a nas/rae song.

Nexgrl said...

I hate spam comments. I think those that use those tactics are desperate.

Model Minority said...

Good Book Title.

"Tactics of the Desperate".

BeautyinBaltimore said...

Owning property is significant, in a way that I can't describe,
to people who have once BEEN property.

I have to cosign on this quote. That was one of your genius moments. I must use this on my blog.

Model Minority said...

Truth be told. I can't take all the shine for the been property/owned property comment.

Last year, when i was in Texas, I asked SJ why so many people in the south got land.

...and I paraphrase, "come on blood, WE were property. Thats real to us down here".

Which begs the question, do more black folks own in the south than the north/west?

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