Posted on 03/26/2007 3:13:51 AM PDT by edpc
Immigrants are emerging as among the first victims of a growing wave of home foreclosures in the Washington area as mortgage lending problems multiply locally and across the country.
Nationally, 375,000 high-interest-rate loans were made to Hispanics in 2005, and nearly 73,000 of them are likely to go into foreclosure, said Aracely Paname?o, director of Latino affairs for the Center for Responsible Lending. About 1.1 million homes in the United States are expected to go into foreclosure in the next six years, and many native-born Americans are likely to be stuck with burdensome loans. But immigrants are getting hit first in part because their incomes tend to be lower and many have lost construction jobs.
Homeownership rates among immigrants surged in the first half of the decade, making their prosperity an economic success story. Now it is becoming apparent that many people managed to buy homes in an inflated real estate market by turning to unusual new mortgages only now receiving scrutiny from regulators and legislators. Many of these loans start with attractive low "teaser" rates but feature payments that can suddenly increase.
Unfamiliar with the U.S. mortgage market, unable to speak or read English well and vulnerable to the blandishments of real estate professionals who told them property values always rise, many immigrants are struggling to deal with high mortgage payments as their homes sag in value, making it harder to escape the loans by selling.
(Excerpt) Read more at washingtonpost.com ...
The article had to get to the victim stuff. Evil realtors, can't speaka da english, no understand da motgage.ahhhhhh!
This was already cooked in the cake. High interest rates of sub prime loans are meant to compensate for predictable foreclosures. The 80% who pay get homes they would otherwie be denied. The Dems just want to keep them barefoot and pregnant, living in public housing, or , preferably, homeless.
btw, 2400 is the annual ave income in India and Cuba and twice that in Afghanistan.
Geeessshhh! Ever wonder how much of the government could be eliminated, crime would be reduced, people could 'feel better' about themselves if only the Dems were ever seriously intent to 'win the war on poverty'?
Once again LBJ's ego, warped perception and elitist self delusion prevail40 years later still.
Think about all the useless plitico slimes that would never have been elected to office if the Socialist agenda wasn't such a driving metal catastrophe of the Left?
Illegals. Taking the mortgages Americans won't take.
Gee! Does that mean there really are good reasons to learn frickin' ENGLISH!!!???
"... Azimi, a cashier at Giant who makes $2,400 a month..."
I don't make that much AND I pay taxes, too!
Are we talking leagal immigrants or the other kind?
Not to worry the bailout for "undocumented" immigrants will be added to the to-be-enforced portion of "immigration reform."
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$30k/year is 'good money'? Where do you live? You can't even move out of your parents' basement on that on LI. The city's worse.
What they don't tell in this article is that most of these folks bought through Latino agents, at least here in the DC area. There were Latino agents raking in the dough by telling these "immigrants" that they would have to pay full price plus. I am an agent in Virginia and I saw it first hand. If they wan† to live here and prosper, someone forgot to tell them that they must learn the language. I ran out the foreclosures in the D C area and yep most of them have foreign last names. I do not think that I could go to another country, buy something, not pay for it and use ignorance as an excuse. If you know where I could do it, please let me know.
I wonder how many wage earners are living in that home?
Golly gee, I didn't see that article, but I did see this one.
We sold our house to a two-family deal where everything required a translator. They own a couple of businesses, but everything still had to be re-explained in Spanish.
Luckily we just signed our papers at settlement and left. They had about 3 inches of paper to go through.
This Post reporterette still keeps the Washington Post fiction that illegal immigration is good because none of this has to do with illegal immigrants. Right.
Here, for your re-reading pleasure, is what's really going on:
To: Freedumb
Gotta hand it to the MSM, the WSJ, the Chamber of Commerce, the Fed, the banks, the White House, the Congress, Fortune, Kudlow, and all the rest of the usual suspects.
These subprime mortgages go to someone. They have a mailing address. By artful writing and punditry, the picture has been painted that the people who got these subprime loans are poor folks or dumb boomers who re-financed to buy their new Volvo and swimming pool. Wrong!
Those cases are few. Those subprime mortgages issued in the last several years that are now facing foreclosure have gone to illegal aliens, landlords who rent to illegal aliens, and minorities who have lost jobs to illegal aliens, especially African-Americans in the trades and services industries. The common thread - illegal aliens. Spend 10 minutes on Google and you can see the aggressive marketing of subprimes to illegals (you may have to translate).
The distribution of subprimes going into foreclosure closely matches the concentrations of illegal aliens - California, the southwest border states, the southeast states, metro areas like Denver and in the Rust Belt. Many of these mortgages were granted to buyers with no SS number or a stolen number or just a taxpayer ID number (ITIN). Who is that group? Not blacks; not boomers. Not even speculators. Who's left? You figure.
Some common scenarios: An illegal, actively recruited by banks or mortgage lenders, buys a house, often an expensive house ($600,000). If he can't qualify, he gets other illegals added to the mortgage until they qualify. Or a profiteering landlord buys a house with the intent of setting up a dorm house for illegals. With 10-20 illegals crowded in at $300-400 rent, he makes a tidy profit even with a big mortgage payment.
Like Ponzi, it was great for everybody. The banks made big profits on the high interest. So did the REIT and funds managers. The landlods did well also on rents and house appreciation.
Then the housing bubble burst. The illegal renters started losing work and were evicted. The landlords couldn't service the mortgage and/or with lowering values the mortgages went upside down so it was easy to walk away and foreclose.
But that's not the big story. It's how effective the cabal of power brokers from the White House, the Chamber of Commerce, the MSM, the Congress, the banks, the CEOs, and the unions have covered up this causality so that they can get amnesty and open borders rammed through to guarantee an unending supply of cheap alien labor.
They know that if the connection between illegal alien hordes and the subprime collapse and the damage to the economy worse than the Savings & Loan scandal of the 1980's, the people will be outraged and demand we close the borders.
Can't have that. Let's keep the sheeple in the dark. They'll be the suckers paying for it in the end with lost jobs and higher taxes. The real villians have already made their fortunes.
8 posted on 03/23/2007 9:11:29 AM PDT by oldbill
Hard to be sympathetic. Even if you don't fully understand English, numbers don't lie. 3800 is more than 2400 in any language."
Actually, the math does work out - here's how:
The Post reporterette (they really hate that!) didn't tell you the rest of the story. In the Washington area, and everywhere else, the owner will rent out rooms to a lot of other illegals at exhorbiant rents, like $300-400 a month for a bedroom with two or more bunked in. Put 10 illegals in that house and you get a $3000-4000 revenue stream to clear the mortgage and even make a pretty profit. In the Washington suburbs, the standard scenario is an immigrant buys a house - the bigger the better - and the next thing you see is a truck pulling up with a load of 2x4s and wallboard and mattresses to start divvying up the house into multiple rental bunks.
It all worked out well the first year or two (the wave of illegals really took off in 2004) until these subprime mortgages either ballooned or had a huge ARM rate increase. Because these lenders built in huge pre-payment penalties, the immigrant could not re-finance. And with the construction business drying up, the renters had to check out.
But not to worry - Hillary and Dodd are already working on legislation to help the borrower and save the lenders.
Suckers!
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