by Marvin J. Ramirez
Marvin J. Ramirez
The damage is done now, after greed and excessive ambition hit its highest levels. The ‘get a real estate license and become a millionaire overnight or buy a home at ridicule, illusionary price, and wait for a couple of years for the price to go up,’ it’s over.
Predatory lending is to blame. Lenders got their money from the bank, and while everyone else in the business chain got their huge profits, innocent people got stuck with a debt not even five working families together could afford to pay. And all of this was done without governmental supervision and protection to consumers.
However, a California reinvestment coalition is calling upon state leaders to protect homeowners, and families from predatory lending.
“I am here out of concern for the 500,000 or more Californians who may lose their homes as a result of irresponsible lending. California has had the most foreclosures in the nation and six California cities were among the nation’s ten cities with the highest foreclosure rates in June,” said Alan Fisher, executive director of the California Reinvestment Coalition (CRC).
The statement was made on Aug. 21 at the California State Senate Banking, Finance & Insurance Committee’s informational hearing on homeownership preservation in today’s mortgage market.
“The loss of home ownership is just the first step in the economic and human impact of this crisis. If homes go vacant, neighborhoods lose value. There is a domino effect causing other homes become in danger of foreclosure as they lose value. All these homeowners become more financially stretched and retail sales drop. Cities lose revenue and employment decreases,” said the statement.
If the state doesn’t assist homeowners during this crisis, then it can be accused of being an accomplice in this crime. The Governor and the Legislature must help families, which consequently will help the economy of the state.
