Indisputable Proof Of Foreclosures Being Stained With Racist Colours

October 18th, 2007 | Tags: Foreclosure

It is apprehended that before the year bids adieu about 15,000 houses in New York City will be foreclosed. Looking at it from a different angle, racist colour is beginning to be a determinant factor in the ongoing crisis. The lenders are being primarily blamed for having discriminated between Whites and non-Whites in their predatory lending games.

These loans were given out during the last ten years to many who had bought property many years ago – maybe some decades. Taking advantage of the property boom house developers and debt consolidators soon took on the role of becoming lenders. The borrowers walked into this trap because they found it easy to get cash to renovate or refinance old mortgages and even pay off pending dues. These loans are short term ones with high interest. For six months the rate is 1.5% but suddenly it escalates to 7 or 8% spelling doom for those with limited income.

Most of these sub-prime loans with high interest and exorbitant fees and penalties are located in areas resided predominantly by Afro-Americans and Hispanics. In White dominated areas the rate of interest is relatively low. This sensitively critical study was made by NYU Furman Center for Real Estate and Urban Policy. Many of the coloured foreclosure victims had bought their units in the 60/s and 70’s. Some of the young are first time owners. But foreclosure does not understand age – it is striking out both at young and old. A fear of losing the roof above their heads is gripping the communities.

Sarah Ludwig, a spokesperson of Neighborhood Economic Development Advocacy Policy draws a parallel between what foreclosures are doing now to the past days of depression and recession.

In this matter of mortgages with racist undertones, the Federal and State regulators have a lot of say. It is blatantly illegal to use colour as a yardstick while issuing mortgages. New York Times has analyzed that the blacks are paying far higher interest than the Latinos and the latter again are paying more than the Whites.

Unfortunately despite the writing on the wall the government is practically sleeping over the whole thing and not doing anything. It is a very foolish thing to do because minorities are being affected. They will demand justice pointing to the overwhelming evidence of racism that just cannot be ignored.

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