Thinking About Buying a House? Pay Attention To This

Filed in archive Latin Culture , Latin News on March 19, 2007

If you're considering to take a loan or a mortgage, pay close attention to this article. Hispanic immigrants are getting in financial trouble, being misled by mortgage brokers into buying properties they cannot afford.

"Hispanic immigrants across the U.S. are being hit hard by the subprime mortgage crisis.

Many of them are risking their life savings in a failed bet on the American dream of owning their own homes.

Hispanics hold up to 40 percent of mortgages in the troubled subprime loan market, where higher interest rates are charged to buyers with a damaged credit history or little borrowing experience.

Often new to the country and with limited English, many say they were misled by mortgage brokers and never expected their payments to be so high. (...)

About 1.5 million homeowners will face foreclosure this year, an increase of at least 20 percent from 2006, according to housing research firm RealtyTrac.

Some mortgage brokers were too aggressive in persuading people to buy homes they could not afford, and Hispanics were especially vulnerable because immigrants have little credit history and are natural customers for subprime loans.

"Their lack of financial education and their overwhelming desire to buy a home makes them the perfect victims of predatory lenders," said Gregory Cahn, from La Fuerza Unida Inc., a housing counseling agency in Long Island, New York.

"People call me from all over the country to tell how they've been cheated. There are from 350 to 400 types of loans in the market, but brokers just sell what's convenient for them," said Aracely Panameno, director for Latino issues at the Center for Responsible Lending, a consumer advocacy group."

Read the Full Article: Hispanics American Dream Hit By Mortgage Crisis