Lenders, Borrowers And The Entire Nation Caught In The Foreclosure Net

April 1st, 2008 | Tags: Foreclosure

Like other parts of the country Durham County has not been spared. In 2007 about 1,700 houses had been foreclosed. This year 2,000 more would be added to the list. About 80% of the owners of houses in this county who are in some stage of foreclosure are blacks. The people are largely seniors – one out of six are 55 years and above. The legal fraternity is of the opinion that local governments should provide support to the non-profit agencies by granting more resources and buying the vacant foreclosed houses as an opportunity to make available more affordable housing. Also they are insistent that federal and state regulations should be more strict and effective in dealing with dubious lenders and questionable practices of real estate dealers. The first time buyers have been tricked into loans that they can ill afford.

While in majority cases the blacks have been the targets in the long run nobody has been spared. A study conducted by CRA-NC noted that in 73 neighbourhoods of Durham there has been one foreclosure from January to October 2007. Home loan procedure is so complex that anyone can easily get duped, commented Selina Mack, the executive director of Durham Community Land Trustees. The latter has successfully managed to place 60 families in the lower income group into affordable houses. She says that the mode of operation of fraudulent lenders is so bad that even college students have been given house loans. The paper work is confusing – mostly in small print and largely full of legal language that the lay person cannot understand. Thus the call of the hour is counseling – especially for the vulnerable first time buyers and those already at risk of foreclosure.

Diane Catotti, the Councilwoman of Durham Affordable Housing Coalition said that some city founds are available to give help but more funds are required keeping in view the magnitude of the foreclosure problem. In the 2007 budget there was a half per cent increase on property tax to fund the steps taken for affordable housing. Most of the money will go to take the homeless off the streets. More is expected from the upcoming budget to give support to those reeling under the housing crisis. She said that an outreach is required together with educating the people to allow them to know about the risks involved and the financial options available.