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  1. #11  
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    You're catching on, that's good. And I am also a "person of color". I'm sort of a pinkish-beige.
    "Today, [the American voter] chooses his rulers as he buys bootleg whiskey, never knowing precisely what he is getting, only certain that it is not what it pretends to be." - H.L. Mencken
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  2. #12  
    noonwitch
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    Quote Originally Posted by LogansPapa View Post
    Don’t know.

    Ever set and read and attempt to comprehend every loan document (about thirty) when you buy a house?

    If you answered "yes" you're either incredibly gifted or simply a liar.

    Whatever broker / loan officer / bank representative / real estate agent that’s walking you through the process is required to give you a quick verbal explanation, by law, but not to threaten their position by making sure you understand all of the liabilities and consequences of what you’re about to enter into.

    Not really practical to do so. No penalties for said officer for not making sure you understand.

    Lets just cut the crap here - people of color occupy some of the lower rungs of the economic ladder. Always have. No mystery there. Why the sudden change in the financial climate to anxiously invite them into an arena they were never allowed to enter before?

    Answer: Simple Greed.

    I was lucky when I bought my house, because I had an excellent real estate agent who went over everything with me. Same with the banker. I also had the assistance of First Bank of Grandpa as far as the down payment was concerned.

    Most new home buyers don't have it so lucky. I didn't have great credit, but I do now that I've owned the home for 7 years, and haven't missed a payment. I had a very strong work history, and the bank told me that that was the deciding factor in approving my mortgage.

    One of the factors affecting home loans to lower income people in the 90s was welfare reform. People were working, instead of just collecting a check, and some were getting promoted, so more wanted the security of owning a home. In the 90s, money went farther, because gas prices were low. A lot of those people lost their jobs and weren't able to find new ones.

    But most of the people I know who are in foreclosure are not people who were participating in welfare reform. They are people who wanted bigger houses in better neighborhoods, and then lost their jobs and took new jobs at a much lower rate of pay. Because the housing market in metro Detroit is in such bad shape, they weren't able to sell their homes.
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  3. #13  
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    Quote Originally Posted by LogansPapa View Post
    Ever set and read and attempt to comprehend every loan document (about thirty) when you buy a house?
    I did. We were undertaking a huge amount of debt, and I wanted to know everything I could about how I was protected, when I had to pay, what additional fees I could incur, and how to incur those fees.

    I did the same thing when I changed my cell phone plan.
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  4. #14  
    There are a lot of dominoes in line here. Although greed certainly played a part, it wouldn't have been such a big part if lenders hadn't been pressured to extend loans to bad risks. When that happened, they did what any sensible entity would do: they sold the paper as fast as possible.

    As far as minorities being somehow unable to understand loan documents, I doubt that's true in any general sense. You may not understand where half your closing costs go but the loan officer makes triple sure that you understand the loan amount, the interest rate, the duration of the loan, and any penalties you may pay for prepayment or default. If you have an ARM, they go over all that.

    The fact is that banks used to take employment history, income verification, and credit history for a reason. It allowed them to weed out the deadbeats and the bad risks. Allowing welfare to count as income was simply insane. That whole process made buying a house more difficult but it made extending loans less risky.
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  5. #15  
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    Quote Originally Posted by biccat View Post
    I did. We were undertaking a huge amount of debt, and I wanted to know everything I could about how I was protected, when I had to pay, what additional fees I could incur, and how to incur those fees.
    Absolutely. I don't know why it's presented as an impossible feat. It's common for those of us who are careful. Maybe that's why we have money - we are careful to know the details about letting it go.
    "Today, [the American voter] chooses his rulers as he buys bootleg whiskey, never knowing precisely what he is getting, only certain that it is not what it pretends to be." - H.L. Mencken
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  6. #16  
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    Quote Originally Posted by linda22003 View Post
    Absolutely. I don't know why it's presented as an impossible feat. It's common for those of us who are careful. Maybe that's why we have money - we are careful to know the details about letting it go.
    I don't know about that. I've made some pretty stupid decisions in my life. And I have a bad habit of spending money frivilously.

    Fortunately when I do it's never more than $30-40.
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  7. #17  
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    We all have the expenditures we regret, but you're right - they generally don't extend into the hundreds of thousands of dollars.
    "Today, [the American voter] chooses his rulers as he buys bootleg whiskey, never knowing precisely what he is getting, only certain that it is not what it pretends to be." - H.L. Mencken
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  8. #18  
    Senior Member LogansPapa's Avatar
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    So if you came from a poor community, from a poor background - maybe with less than a stellar education and your local bank courted your financial business, where they never had before, would you know to take the time and go over every document you were signing, even though it may not be in your native language and one of your relatives was having to interpret during the signing process?

    These folks had never been offered this opportunity before. Did the evil Democrats come up with this 'obvious to fail' scheme to make their rivals look bad? Or did the lending institutions and realtors go out of their way to invent little "practical solutions" to the normal bureaucratical hindrances.

    After listening to my daughter-in-law’s (many years in the business) explanations and how some real estate brokers had sometimes put up their own money for the first 90 days of payments to get unqualified Hispanic families (sometimes three separate households in one house: what we refer to as "Clown Houses" out here in SoCal) into a home - I think the onus for this fiasco is on the people that brokered the deals.
    At Coretta Scott King's funeral in early 2006, Ethel Kennedy, the widow of Robert Kennedy, leaned over to him and whispered, "The torch is being passed to you." "A chill went up my spine," Obama told an aide. (Newsweek)
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  9. #19  
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    Quote Originally Posted by LogansPapa View Post
    So if you came from a poor community, from a poor background - maybe with less than a stellar education and your local bank courted your financial business, where they never had before, would you know to take the time and go over every document you were signing, even though it may not be in your native language and one of your relatives was having to interpret during the signing process?
    Oh, you're right. They're just victims.
    We sold our townhouse to a Hispanic family whose realtor was interpreting for them every step of the way at settlement. They've managed to keep the house for 18 years.
    "Today, [the American voter] chooses his rulers as he buys bootleg whiskey, never knowing precisely what he is getting, only certain that it is not what it pretends to be." - H.L. Mencken
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  10. #20  
    Senior Member LogansPapa's Avatar
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    Quote Originally Posted by linda22003 View Post
    They've managed to keep the house for 18 years.
    Different time - different financial climate. Please try to keep apples with apples.
    At Coretta Scott King's funeral in early 2006, Ethel Kennedy, the widow of Robert Kennedy, leaned over to him and whispered, "The torch is being passed to you." "A chill went up my spine," Obama told an aide. (Newsweek)
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