Latinos Disproportionately in Foreclosure
When we hear that millions of people are loosing their homes across the country this doesn't tell us who those people are. Who are loosing their homes? What is the distribution across race or income - this is not something we hear about much in the news?
A study done by a Latino advocacy group has shown that Latinos have disproportionately experienced foreclosures in the US. An estimated 1.3 million Latino families will loose their homes between 2009-12 - 400,000 in 2009 alone.
The study interviewed 25 families on their experience with foreclosure and there were some similar findings.
-Many had reported being victims of predatory lending.
-Loss of job and rise in mortgage payments led to foreclosure.
-None of the families were able to receive a mortgage modification.
-Financial troubles led to troubles in the family and school.
-One family was left with savings and many had to forgo necessary health care due to lack of money.
The researchers have called this generation of Latinos the 'foreclosure generation'. Many programs are being advocated such as "a principal reduction and a strengthening of the safety net, including allowing foreclosed families to stay in their homes as renters and a program of community based, nonprofit financial counseling." The researchers assume that these families will return to poverty being "knocked off the path to the middle class." Read the study here.
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