Purchasing a home is an intimidating process without the news reports about the current mortgage crisis, repeating terms like sub-prime lending and balloon payments. Families are losing their homes at an alarming rate and it has been reported that African Americans have been the target of mortgage lenders processing high cost loans by qualifying those with poor credit scores for high interests rates and hidden costs like balloon payments. Sub prime is a type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans.Dedrick Muhammad co-author of a report from United for a Fair Economy called “Foreclosed: The State of the Dream 2008, cites the sub-prime mortgage crisis as the source leading to the greatest loss of wealth in modern US history for people of color who stand to lose over $200 billion dollars. Dedrick Muhammad is senior organizer and research associate at the Institute for Policy Studies.It all seems overwhelming to our desire to own a home and have our own piece of land to cultivate overshadowed by the anxiety we all feel for those families that are victims of foreclosure due to predatory lending practices. We dread the thought of losing a home before we even purchase one. If you have ever lost a home is it a paralyzing experience. The feeling of shame, blame, and guilt to feel your home slipping away can be devastating.Read moreOmitunde, Publisher of African American Family ConnectionAn online magazine about African American Family values and community.Visit AAFC for the latest issue each month and a copy of "The Ripple Effect".Read more…
