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News Suffering of blacks on foreclosure in USA The news article by Jason Szep on Tuesday March 20th stated
clearly that racism prevails in many areas in USA where they suffer
most from the foreclosure increments. In BOSTON a black couple Barbara Anderson and her husband have
been under misery. They were one of the first few people to move into the white neighborhood,
and the racism was such that people burned her garage in front
of her. In 2007 Anderson came under a much different form of inequity
as brokers of subprime mortgages started to attack on weak credit
borrowers. According to Anderson these subprime lenders make deals of such
nature that it leads them to bankruptcy. She says their home was
almost foreclosed but another bank gave them a second chance and
provided them with a loan. All this stress had made Anderson a
patient of high blood pressure, headaches and stomach problems. This is happening in many areas of United States that blacks and
Hispanics are given a high-cost, subprime mortgage when planning
to purchase a home than whites; this becomes a cause of increase
in foreclosures in deprived and mostly black neighborhoods throughout
the country. Sometimes predatory lenders give blacks and Hispanics a high price
loans even though they deserve a cheaper one because of their credit
situation. According to Jim Campen, a University of Massachusetts economist
the low income and poverty status of blacks and Latinos puts them
in the group where they receive higher percentage of subprime loans;
however some lenders add a 3% interest rate on top of this which
leads to foreclosure many times.
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