25% of African Americans Have Lost Home in Last Three Years

First of all
from a national perspective, the total wealth destruction to middle class
working American people from the housing/economic/Wall Street collapse in 2008
was in the TRILLIONS of dollars. The American mainstream media (MSM) refuses to
broadcast the real extend of the amount of money stolen from hard working
middle class people, but instead concentrated on the problems and solvency of
all of the Wall Street Banking firms. The American people are completely
unaware that virtually all of the MSM networks are an integral part of the
American corporate conglomerate structure, which means that they work for their
respective corporate executives. (For example NBC is owned by General
Electric.) Therefore one would not expect that the American media would be
concerned about loss of wealth in the middle class because it does not directly
impact their Corporate owners.

If we zoom
in and take a look at the impact of this loss in wealth among middle class
black Americans we will see that the effect has been devastating. The
overwhelming majority of wealth loss among black Americans was the loss in
equity in individual homes. Foreclosures in the black communities were due
primarily to home improvement loans written in the form of “balloon
notes”. The mortgages in many of these homes had already been paid off and
the owners were simply seeking to borrow small sums of money for some rehab
project in the home such as a new kitchen or a new bathroom. Unfortunately
these home owners were “sweet talked” and “suckered” into
signing up for more money than they actually needed by crooked mortgage
writers.

These mortgage “salesmen” were always quick to point out
“large amounts of equity” that existed in the home. Under normal
conditions most of these homeowners could have managed to pay off their
respective home improvement loans, but the interference of the Wall Street
gambling traders. Wall Street firms arranged to take over these loans and then
they created new so-called securitized investment vehicles for sale on the worldwide
market. However, the unchecked, unrestrained explosive sales of these mortgage
backed securities blew up in their faces and created a credit freeze which in
turn created an economic recession which caused many of the homeowners to lose
their jobs. Once the home owners missed one or more payments, the “balloon”
penalty provisions in their loans kicked in and the interest began to rapidly
inflate the size of the loan until the banks started foreclosure proceeding.

What us
black folks fail to understand about the mortgage game that was run on the black
communities was that Wall Street’s involvement in these pissy little home
improvement loans and second mortgages was in their designation of these new
trading vehicles as “mortgage backed securities”. In other words the
main reason that these types of loans were so attractive to the normally risk
adverse Wall Street bankers was the fact that these mortgages were written with
“BALLOON NOTES”! In other words the loans were being made on property
that had many times the dollar value in equity in the property than the amount
of money actually being loaned to the home owner. For Example, consider in 2007
a home with a $300,000 value and the homeowner took out a $60,000 loan, leaving
$240,000 of equity in the house. Thus if the homeowner defaulted on the loan,
the bank would foreclose and re-sell the home and pick up the $240,000 equity
for their profit.

The
“balloon note” provision of these types of mortgages would guarantee
huge profits for the Wall Street bankers in the event the homeowner encountered
difficulty meeting his/her payment obligations. On the other hand if the homeowner
successfully paid off the loan over the period of its respective schedule the
bankers would still receive profits under the normal interest schedule of the
loan.

Blacks and black African-Americans should have an agenda already prepared for political party comers. No more “this is what I can do for you”. but “this is what we are wanting can you deliver”?

I apologize for the lines in Spanish I post. I was chatting with someone.
A mistake has been making all those who are losing their houses is the refinancing because the loan reverts to its original state. Unless you reduce the years of the mortgage.
I wanted to reduce the loan interest from 8.5% to 3.5%, but was unwilling to return to a 30-year mortgage. I made the refinancing, but I did it fifteen years instead of 30 years. The monthly payment does not decreased, but I avoid fifteen years of mortgage and interests.

Impressive and sad stats. Not because it’s an african american thing, but the % is really high

Regards
Sarah
http://www.foreclosurewarehouse.com/