The Sub-prime Massacre!

For many people in the United States, owning a home is a part of the American Dream. However, the recent sub-prime debacle is more of a nightmare, than a dream. According to a recent study by United for a Fair Economy, "the greatest loss of wealth for people of color, in modern U.S. history, is predatory lending". The sub-prime lenders practiced calculating lending schemes as a matter of policy, to trap people of color-city after city. These banking institutions are considered criminally culpable, and puts our nation in a dangerous collapse of wealth; according to the report. SEE REPORT BELOW

The wealth loss is staggering: The mortgage crisis not only revolves around the sketchy credit consumer, but also, the credit worthy. However, it's important to note that people of color have collectively lost between "$164 billion to $213 billion over the past eight years," with Latinos losing slightly more than African Americans. The following report is mind boggling and really outlines how predatory lending took shape! However, it does not mean that the borrower is free from responsibility of their actions. As a consumer, it's your responsibility to do your homework, research and most importantly, hire a real-estate attorney to review all documents (prior to any signatures). Consumers must make sure that emotions of owning a home, not retract you from making common sense decisions.

As a Realtor, it sickens me that so many consumers were taken advantage of. In fact, that's one of the main reasons that I became a Realtor, because I was taken advantage of when I purchased my first home. I know from experience how devastating it can be when you learn that you have been taken for a ride. Not to mention, the cost associated with getting back on the right track, is just as devastating. It's further demoralizing to learn that the very people you entrusted to help you-are the culprits behind the predatory practices. Sometimes the lender, the Realtor, the appraiser-it's pathetic, but not the end of the world!

My advice for any consumer is to arm yourself with as much knowledge as possible. As the old adage goes, "knowledge is power"! A good book to help you spot "mortgage piranha's": Kickback: Confessions of a Mortgage Salesman, now one of the best-selling books on mortgages. Educate yourself to prevent any further schemes and only work with people who prove to be TRANSPARENT. What do I mean by transparent? People who have nothing to hide and can show you credentials of success upfront. *(READ MY OTHER BLOG ON TIPS TO FINDING A GOOD LENDER, REALTOR AND ATTORNEY).

*21 Lenders currently being sued for unscupulous lending practices:
Ameriquest Mortgage Company
Bank of America Corporation
The Bear Stearns Companies
Citigroup, Inc.
Countrywide Financial Corp.
Credit Suisse (USA)
Deutsche Bank Trust Company
Fremont General Corporation
GMAC-RFC
Goldman Sachs Group
Greenwich Capital Markets, Inc.
HSBC Holdings, PLC
Indymac Bancorp, Inc.
J.P. Morgan Chase Co.
Lehman Brothers Holdings, Inc.
Merrill Lynch & Co., Inc.
Morgan Stanley
Novastar Financial, Inc.
Option One Mortgage Corporation
Washington Mutual, Inc.
Wells Fargo & Company

UFE Report-Check out this report, it's mind boggling!

http://www.faireconomy.org/files/StateOfDream_01.16.08_Web.pdf