Author: Jennifer Franco
According to economist, Edward Wolff, US minorities will experience the shattering blow of foreclosure this year. Homeownership for blacks and Hispanics in the US is plummeting down to an alarming rate. The high interest rates and mortgage payments are primary factors that interplay in painting this bleak economic picture. In Rhode Islands alone, 50% of Hispanic homeowners are spending 38% of their overall monthly income on home loan payments.
Although there was a significant hike in the home ownership and rate among Hispanic minorities in the early 90’s, a closer look at the situation will show a double-edge sword effect. During the controversial housing boom in the US, many Latino families were offered home loans without any requirement of turning in income reports, but were charged of higher interest rates. In the process, these minorities are getting unfavorable mortgage deals that easily bring them to foreclosure. This miserable cycle involving home ownership and loss has been continuing for many years. Moreover, the mortgage crisis already in its highest peak this year is going to make matters worst.
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In the past months, foreclosure cases n America has already reached a staggering rate of more than 700,000. Most of the homes that suffered this ownership backlash and pullout were owned by Hispanic minorities. One mortgage project projected by experts to solve and cap this problem is loan modification.
The Obama administration is not taking this issue lightly. The newly appointed US President has already made sweeping efforts in the hopes of stabilizing the shattering mortgage problems in the country by allocating $100 billion for this cause. Part of this course of action is the clamor to borrowers to try other options to settle their debts.
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Since loan modification ends in lower interest rates and reduced monthly payments within an extended loan term, minorities in the pits of debt will be given another option to make the payment. This is foreseen by economists and financial experts as the best way to save home ownership. There are a hefty number of loan consultancy groups and companies that are willing to process the loan. If negotiations with the lender end in success, the borrower will finally reap and experience easement in catching up with loan payments.
With loan modification, solving the mortgage predicament will be made easier. Experts who advocate refinancing agree that modifying loans might just be the panacea for the foreclosure woes many Hispanic minorities in America are suffering from.
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Article Source: http://www.articlesbase.com/loans-articles/loan-modificationamericas-solution-to-mortgage-problems-among-hispanic-minorities-741220.html
About the Author
Jennifer Franco is a creative writer, teacher and freelance language editor. She writes about a wide array of topics including art, culture, entertainment, cars and loan modification.
You may call 1.888.864.1663 for more questions about loan modification.
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