Latinos Devastated By Wave Of Foreclosed Homes In New York

Latino families, the last major group to attain the American dream of Home Ownership, have been especially devastated by the wave of foreclosures since the beginning of the 2008 recession.

And in New York, the rate of foreclosures among Latinos is higher that that among every other population group.

A recent study by the New York Communities for Change organization found that blacks and Hispanics constituted 32 percent of homeowners in New York between December 2009 and December 2010, but a full 56 percent of those were notified pre-foreclosures, making them 175 percent more likely to be foreclosed upon than the general population of homeowners facing the same fate.

Christopher and Wendy Castro, a Dominican couple living in the Long Island hamlet of Brentwood in the Town of Islip, are making a desperate attempt to keep the home they acquired in 1989.

Wendy told HuffPost LatinoVoices that they applied for a loan modification in June 2010 but their application was rejected. Then, they received a notification that their house was in the foreclosure process.

“We’ve paid our mortgage for almost 22 years, but because of the poor economy, my husband’s business has declined to where we fell behind on our payments,” said Wendy. Her husband, Christopher, added that he reopened his business to increase his income and resume payments, but it wasn't enough.

Blanca Ramirez, an immigrant from Peru, is going through a similar situation. In 2006 the bank granted her a high-risk loan for her home. Her trouble started after she divorced.

High-risk loans are those where applicants lack minimal criteria like sufficient credit history or income level, or have had serious problems paying debt.

Ramirez also sought a loan modification, and also was rejected.

The Latino families interviewed for this story described the contracts they signed as “too complex,” which they say that, combined with their recognized limited fluency in English, was particularly frustrating.

Ramirez, whose home is in Levittown, Long Island, works for the postal service and has a second job.

Attorney General Eric Schneiderman of New York is looking for ways to establish a system of accountability and relief for affected families. Together with other prosecutors throughout the nation, Schneiderman is launching an initiative that would “penalize Wall Street giants that have gone unpunished.”

“Millions of people have lost their homes to foreclosure, or are reaching the point of no return. In the interest of fairness and justice, it is essential that we help those in need and determine who is accountable,” he said in statements made to HuffPost LatinoVoices.

His office, said Schneiderman, “is committed to a detailed analysis of all possible causes that led to this situation and do everything possible to ensure that it never happens again.”

According to a report issued by New York State Comptroller Thomas DiNapoli, although in the first quarter of 2011 the mortgage foreclosure crisis in New York state was less severe than in other parts of the country, the southern area, including Long Island, has been especially affected.

The Suffolk and Nassau counties in Long Island, were Hispanics comprise 16.5% and 14.6% of the population, were ranked first and second among the highest foreclosure rates in the state during the first quarter of this year. From 2006 to 2010 Suffolk registered 30,552 foreclosures and Nassau registered 22,376.

In states with a significant immigrant presence such as Arizona, Nevada, California, Florida, New Jersey and New York, the mortgage crisis hit hardest among black and Hispanics, who are more likely to face foreclosure, according to a report by the Pew Research Center.

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Comments

[wynndward]

01:42 PM on 09/02/2011

I feel for the woman and her husband who are looking at losing the home they have had for 22 years.
IHowever, you don't have to be fluent in English to understand that if you only make $35,000 a year, you cannot in any way afford a home that costs $400- to $700,000. You just have to be fluent in math.
When a white, middle-aged, professional couple I know wanted to take out a HELOC with Wells Fargo, they had to fill out a stack of paperwork an inch thick. At the same time Wells Fargo was making home loans to lower-income minorities with the only qualification being that they had a PIN number. They were not requiring social security numbers, proof of income, credit checks, job history for the last umpteen years, previous home addresses ever since the day you were born from THOSE people. Why? Because they knew they were going to dump those loans. I don't feel sorry for the banks and I don't feel sorry for the people who tried to buy something that four working brain cells would tell them they could not afford. If you want to level charges of racism, I can't think of any Caucasian person I know that got a home loan just based on a PIN number without any proof of income. That sounds discriminatory to me.

[Carlos L Acevedo]

12:34 PM on 09/02/2011

"The Latino families interviewed for this story described the contracts they signed as “too complex,” which they say that, combined with their recognized limited fluency in English, was particularly frustrating."

If you don't understand your contract, don't sign it. It is sad when someone loses their home because of losing their job or a failed business. People who, on the other hand, simply don't read the fine print or understand their finances need to take responsibility for their poor decisions. "Too complex"? Really? Do your homework.

[Max is Back]

08:37 AM on 09/02/2011

The black and latino communities were targeted by predatory lenders backed by big banks. This economic cannibalism was the basis of the Bush bubble that burst in 2008 under W and has been dragging the economy of the country down ever since. All GOP economic policy is based on deception and fraud...

[OlderNewYorker]

01:46 AM on 09/02/2011

As a child we were taught in our 1950's classrooms that the people of Mexico were our friends.
Let me assure all Americans that the Baby Boomers have less days in front of us than we have behind us. Since the U.S. birth rate averaged 2 children this nation is treading water as to replacing my generation.
Think about it. Do you want hard working, family oriented, Christian Mexicans and other South Americans migrating into our nation or would you prefer people from other parts of the world. You had better face the fact that as the Baby Boomers die off it will crate a vacuum. History tells us "Vacuums" will get filled.
The history of this nation has already been written. By 2050 Hispanics will be the "New Irish" as they become the majority in this nation.
50 years ago I learned in class that the people of Mexico were our friends. So I say welcome to our friends with a caveat. Do not,blame the people of the U.S.A. for the miserable conditions in your former country. Blame those who made your lives miserable. Your own corrupt government. Few immigrants came to this nation because they wanted too. Just as I blame the King of England for forcing my ancestors for coming here in the 1840's and 1850's. I ALSO THANK HIM!
Most of all I say to all immigrants learn when you say "This is my country you mean the U.S.A.

[rubbercow]

04:16 PM on 09/01/2011

It is so sad that Latinos are the only group who have suffered badly in this economy.

[weebils]

02:45 AM on 09/02/2011

teehee

[Ed Baker]

02:46 PM on 09/01/2011

So racism causes foreclosures?

If you pay your mortgage payments like you agreed - there can be no foreclosure.

The best way to stop foreclosure is to pay your mortgage payments.

[Gregory Basta]

01:49 PM on 09/02/2011

You're right, it's that simple. No other issues at all *cough*robosigners*cough*MERS*cough*fraudulent foreclosures....yeah, so none of that happened.

[Ed Baker]

02:42 PM on 09/02/2011

Find one foreclosure that was completed where the borrower paid their payments as they agreed.

You don't get to a robo-signer if you pay your payments. MERS is still thriving and it's a good system. Hundreds of millions of mortgages, and very few errors, less than under the old system.

[sickofidiocy]

02:01 PM on 09/01/2011

Nobody on Wall Street forced these deadbeats to buy houses they could not afford. Their blame game is a sham, designed to gain sympathy from bleeding hearts. Pay up or move out.