Why Brains Of Obese People Are Different From Those With…
Meet The Clutch's Less Expensive Cousin
Black folk have been moving to Atlanta in droves for the last 20 years, and why not? Who doesn't have a cousin or college classmate who told them about the good jobs and cheap houses?Well, all that glitters ain't gold. A New York Times piece this week details how Atlanta has one of the biggest foreclosure problems in the country, even though its economy is stronger than many other places. One problem with the story though: it skipped over a very likely and obvious connection between that foreclosure rate and Atlanta's overwhelmingly black population.Nationwide the story's been the same with foreclosures: housing prices rose too fast, people took out exotic mortgages with adjustable interest rates to afford them, and when prices fell and rates rose, those people could neither sell the houses or afford the higher monthly payments on them.
But there's a lot of evidence that points out that African-Americans got the worst of it, because minorities were more likely to use risky loans to buy houses. It makes even more sense that Atlanta has a big foreclosure problem when you consider that it is full of college-educated, affluent African-Americans, who at least one study suggests were actually more likely to be using risky mortgages to buy than lower-income blacks.
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By: Makia on 7/10/2007 4:47PM
As always, K, you hit the nail on the head. It is unfortunate that our "college-educated" brothers and sisters are not educated in this topic of buying a home and choosing the right mortgage. Lets be real, all of us want to own our own home, but what are we sacrificing in the process to reach that goal. Although I am a sister living in Boston, and yearning to return to my beloved hometown of Atlanta to be able to afford a home, I have to educate myself on "what I can afford". Thanks for the wonderful piece.
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By: Chinnette on 7/10/2007 2:48PM
Great post and you're right on the money with this! The Atlanta housing market here is crazy. I've been house hunting for the last couple of weeks and it is really sad the number of houses in pre-foreclosure and foreclosure. I'm talking about milion dollar homes sellling for half. Lack of education is the key. I think that race plays a major factor. Sadly, many of OUR people have a history of not educating ourselves about the long-term implications of short term gratification (i.e. rent-a-rim, buy-here-pay here, rent-to-own furniture and appliances...just to name a few).
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By: Jess on 7/10/2007 8:08PM
While everyone is blaming the mortgage brokers and lenders for the foreclosure problems, let's shed light on the real problem. Yes, a few greedy mortgage brokers are partly to blame, but the consumer must also share a large part of the blame. If you research most of the borrowers, you will find that most of them had/has credit issues, Late payments, collections, judgements etc.. Many of these loans that we are talking about were designed for borrowers with less than perfect credit. As amortgage broker with over 26 years experience, I have had to educate a large percentage of my borrowers on the simple process of budgeting, not living beyond their means and not trying to have it all on a $10.00 per hour salary. We must teach our children how to use credit and handle money. We must show them the difference between what we really need in life versus what we want. Most young adults today still do no understand that concept. Everytime I turn around some one in the media is giving advice on how to buy a home. Most of the advice is wrong or taken out of context. If you want to buy a home, do it the right way. Live within you means. If all you can afford is a $150,000.00 home, don't get yourself involved in a questionable loan for $300,000.00.
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By: Marvin Thomas on 7/10/2007 3:33PM
Let's just be adults here and call it like we see it.Not to make anyone mad or offended but, after the age of 25 we should all have our wants and needs squared away.You can't drink Don P on beer wages. I am far from a real estate analyst but,one idea I do want to bring to the table is that ,if your home payment is more than 37 to 45% of your monthly income then you're over your head.Let's let those who are on a salary live the way they want.The most important thing I have to say is that when it comes to the business of real estate it's just that.(business) So don't fool yourself into thinking that the agent has your well being as the top priority on the agenda.(sell,sell,sell)At the end of the day that's the only thing that counts.Let's reeducate our young blacks in Atlanta. These words coming from someone who is not college educated ,but a person who has learned the values of being content.(a house is what you make it) WAKE UP OUT THERE
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By: Ashanti on 7/10/2007 3:49PM
That's why financial literacy is so important. They don't teach it in secondary school. They don't teach it in college. You have to take it upon yourself or else you get burned...The Rich Dad is a good tool to understand finances...I was going through similar stuff until I read it. Getting an education is good, but understanding your finances as how to pay off that education wisely is key.
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By: Cecil Jones on 7/10/2007 5:10PM
Foreclosure is about one thing, a lack of access to capital. If people are losing houses, then why don't they have the money? I'm not big on this issue because they wouldn't have the house if they couldn't afford it. I'm big on people talking about how our lack of education is the problem. If I sell "Chicken and Waffles" how much education do I need to be the best? Our problem is this crop of new leaders with access to power selling us out. Cosby, Oprah, Obama, and some of the bloggers in here don't care about the race or equality. It's all about you and maintaining your status. That's what education does. It gives you the ability to "Think" you are superior. Why hasn't anyone talked about the "N-word Funeral?" Negros please, use your education to improve us all.
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By: adrianne on 7/11/2007 11:23AM
As always-if you can't pay then they take your toys away. Race has nothing to do with it. Since when is it news that you're responsible for your own education? Information is to available nowadays for this to be an excuse. Everyone knows as black folks we have to be three times better and constantly on top of our game. By now, this should just be known as fact. Yes, there are many factor contributing to the housing market: tighter employment market, greedy lenders, greedy builders and borrowers who got caught up.
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By: eu4ic on 7/11/2007 3:50PM
Actually it is not a matter of being educated, uneducated or anywhere in between. I have an aunt and uncle that drive school buses caught in the same financial mess.
The biggest problem is people buying stuff they can't afford and falling for the hype.
It is not a black problem either. Mortgage companies targeted Hispanics in California.
I hope we all take the time to teach our young ones about credit, interest and research before buying homes, not only our children, but other peoples children as well.
Oprah, Obama and Cosby don't have time and should not be held responsible for children under our care and sphere of influence being ignorant to finances.
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By: Wj on 7/11/2007 8:53PM
What does oprah, Obama and Cosby have to do with any problems black people have? Do you hear any other ethnic group putting the blame on some one famous, I think not.
Oprah, Obama and Cosby are not your parents, they are not your anything. Get out there the way they did and use your head, think black people, nobody owe you anything but you.
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By: Dumane on 7/11/2007 9:02PM
Black people should open their mouths! My best friend (a white boy) got a bank loan-no high school diploma-very risky job status-at like 23 for a 200,000 home-in the South! From a major bank and the loan was prime!!! Black people get mad at other black people if you raise issues and therefore we all suffer. Blacks tend to want every other black person to sit their and be dumb and quite to not "rock the boat" Now they azz going broke and its good for them.
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