Sub prime “Praying Mantis”
Immigrants depend on their network of trust for advice.All of us are programmed to work towards the American Dream of owning our own home. The government is supposed to protect everyone from predatory practices, illegal practices and outright fraud. They just do not have the staff to adequately police the billions involved.
The government has been trying to create a resolution to support the investment field from collapsing. The end result was not supporting people from losing their homes. It did not attack the issue that home prices were inflated, interest rates calculated to be misleading and considered predatory when the entire math was done.
There has been little discussion about taking legal action against the originators of the loans. Investors of the securities like any shareholder should sue the creator of the loan for providing loan securities that were not worth the house value. In turn, the homeowner should have loans at reasonable rate for what the house is worth minus what they have already paid.
When rules are broken or an individual is abused, it is the government’s duty to protect its citizens in the future and provide its citizens recourse to correct the harm done to them.
Regardless of what ones opinion of how an individual got into the situation of a predatory loan, billions were made on the backs of these individuals. It is why the investment industry called it Sub prime. The investment community created the mess and now needs to deal with the consequences of inappropriate practices. The practice of reselling loans into securities and not taking possession of the property is a secret that must be address. The beneficiary should be the homeowner and/or your organization.
To the degree an organizations can step up and buy housing today under foreclosure and short sales is a good opportunity. Create affordable housing at a level where a living wage can afford it. The investor is not interested in becoming a landlord. Offer a price you can afford and use for staff under a living wage. Submit bids for as many deals as you can afford and wait. A firm known deal is better than no deal. Remember in foreclosure and short sales the investor or bank is trying to walk away with the lowest cash loss possible and will write off the amount they cannot recover on their taxes. So are they really losing? Do not feel sorry for them when negotiating. Play hard and protect your interest in affordable housing for your employees and the community.
