>Dangerous Territory

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With home foreclosures surging, senators on Wednesday examined lending practices that especially hurt minorities and seniors and can heighten the risk of default.

Sen. Christopher Dodd, chairman of the Banking Committee, said the mortgage industry has to take greater responsibility and federal regulators may have to intervene.

“We are seeing increasing evidence that this important source of wealth for so many American families is under a grave threat from predatory, abusive and irresponsible lending practices undertaken by too many subprime lenders,” Dodd, D-Conn., said at a hearing.

Translation: Too many middle class suburbanites are losing their homes and doggone it, we’re going to do something about it!

Make no mistake about it, minorities, especially people of color have been getting dogged by lenders for years. The complaints have been going forward for years, but now you have mortgage brokers on every corner like you have churches and liquor stores in the hood.

The problem isn’t poor people. Well, it is a problem for poor people, but the issue in this case is all the houses at $250k and up that are being foreclosed on.

Not even a week ago I was in a conversation with a buddy of mine whose a Real Estate Investor and he commented that some of the more upscale communities are a literal hot bed for foreclosures. It seems many people got into homes they couldn’t afford using adjustable rate mortgage products and now the mortgages are adjusting upwards and they can’t afford the payments. Some are so cash strapped that they can’t even afford the payments on a fixed mortgage, so many of them are losing their homes.

So, if you live in a nice neighborhood and notice your neighbors moving out in the middle of the night, chances are they are trying to save face, because they couldn’t keep up with the Joneses.

News Article: Senators examine home foreclosure surge

3 thoughts on “>Dangerous Territory

  1. >Unfortunately, this is common across the country. A lot of people are being downsized at their companies and when they find new work they are making 1/2 the salary of what they were accustomed to…so before they know it, they are in "foreclosure."

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  2. >Didn't people know this was coming? There was a reason Congress (when under Republican control) passed anti-bankruptcy legislation. They artificially lowered interest rates, got people to sign onto variable interest plans, passed a law making it nearly impossible for folks to claim bankruptcy, and now are pulling the rug out from everyone. That's what they're all about. Why don't people get this?Funny, the new anti-bankruptcy laws don't stop the corporations from claiming bankruptcy.When are Americans going to wake up and purge DC of all Republicans? It should be evident by now that the only care they have is wealth tranferrance from the bottom and middle to the top.

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