ACORN in Michigan

     Association for Community Organizations for Reform Now (ACORN) a group who is trying to get laws passed to prohibit "predatory loans", such as those with balloon interest rates.   In Flint there have been a few group forums for the community. Information is gathered and shared regarding the high foreclosure rates.  It also serves as an outlet to let others tell there stories of success and failures dealing with these loans.

     In our area of Flint, Michigan, according to RealtyTrac   80,919 foreclosures were filed in Michigan in 2006.  That is an increase of 127 percent.  Ouch.  And they say it's all in our heads that the numbers aren't really that high.  Have you driven through your neighborhood lately,  how many legal postings have you seen? 

     As a loan officer, I agree that some people have been able to receive mortgages that really should not have.  Just because an individuals finances fit into the loan scenario doesn't always mean they can afford the home. Sometimes it really is better to choose a lower priced home or continue to rent.  I try to counsel that.  You do not need to be house rich and cash poor.   These individuals are part of my community, I like the happy outcomes.  I don't want to be approached at the school or grocery store about how I sold them a bad loan.  Why you *@#$%^&**.  Hello Karma.  I don't mess with it :)   I think that an agency should be looking for these types of deals. I agree that lending should be tightened. 

But there is a flip side to this:

Are you a bad loan officer if.... Husband and wife both have college degrees working in their choice of field. Down payment money is saved for that first home. Credit scores look great, you're on your way.  You've got a good feeling about this one. All the ducks are in a row and everything runs smooth.  You get them an adjustable rate, that they can refinance in 2 years.  Couple is happy,  2 years no problem.  Well by the time 2 years rolls around husband is sick with cancer and income is being stretched to the limit and beyond.  Medical bills are rolling in. Their credit is taking a hit and now what. They can't refinance.  They will end up loosing the home.   I'm not here to play the blaming game but do you really think this is a predatory loan scenario?  I don't.  It's not my fault that life took a bad turn.  It's not there fault.  Bad things happen to good people.

Tell me what you think?  

Angela Harrington

PCM Mortgage Solutions

Mid Michigan