Sunday, February 15, 2009

Sub-Prime: How Low Can You Go?

Noticed by Clay Cramer:

Despite making only $14,000 a year, strawberry picker Alberto Ramirez managed to buy his own slice of the American Dream. But his Hollister home came with a hefty price tag - $720,000.

A year and a half later, Ramirez has defaulted on his loan, and he's hoping to sell the house before it's repossessed. And according to many housing advocates and civil rights groups, Ramirez is not alone. As mortgage foreclosures rise, many minorities are suffering.

...Rafael Cebrero, whose company Rancho Grande Real Estate sold Ramirez his home and arranged his mortgage, said subprime loans are getting a bad rap. Those loans, he said, have made it easier for many people, including Latinos, to purchase a home.

We note that Rafael Cebrero is ALSO a minority, at least judging by the name.

...However, the Ramirezes said Rancho Grande real estate agent Maria Avila promised they could refinance their home in three to six months to an affordable rate; until then, Rosa Ramirez said, Avila said she would pay for whatever they couldn't afford.

Avila did supplement the mortgage payments on the Hollister home, paying about $2,200 per month for nine months.

But the refinance never happened,...

Draw your own conclusions.

1 comment:

Anonymous said...

wow, just wow

and those of us making 5X that salary and bought less than 1/3rd of that house somehow will be left bailing all of these asshats out.


So which state will be the first to secede? Where do I sign up for the revolution