How many times have you heard of those stories of woe and bankruptcy caused by the subprime lending and borrowing crisis, currently in the forefront of real estate market news? For me, too many. Here’s a typical account that I found in our local newspaper recently.
Well, there’s more where that came from: you don’t have to look too far to find more tales of struggle that echo the same theme over and over.
So perturbed was I about what was going on that I even wrote about it not too long ago.
This is the type of stuff that could have repercussions across markets far and wide, and will be touching lives far and wide for years to come.
Ultimately, it all boils down to some typical scenarios that I’ve decided to illustrate this way and kept faithful to the actual stories of people caught up in this subprime lending mess (who are usually immigrants or lower income families) — there was nothing here that I made up.
Click here or on the image to enlarge it:
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Don’t let your future end in an American Nightmare: stay away from those lousy loans! Sad to say, it’s already way too late for too many.
Copyright © 2007 The Digerati Life. All Rights Reserved.
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That is a cool chart. It explains exactly what happens. Knowledge is Power so always read and learn about any industry you get into.
Nice flowchart. I was a bit concerned by the “Come to America” bit. Do you have any reference that shows that subprime borrowers are mostly immigrants?
OK, please ignore my earlier comment. I followed the sources of some of your links and there is more than anecdotal evidence for the link between minority immigrants and loan defaults.
Nigel —
That’s right, most victims of mortgage fraud stemming from subprime borrowing tend to be unsophisticated individuals not very well versed in the real estate market and the process involved. They are persuaded by slick and wily agents to enter into these high risk situations with the promise of the elusive American Dream.
Unfortunately, the world is filled with easy targets for scams and fraud; I just don’t see gullibility going away anytime soon.
I am not a big fan of flow-charts, but this one paints a great picture showing the process and how easy it is for someone to be pushed off course by slimeballs.
Thanks for submitting this to the Consumer-Focused Carnival of Real Estate and we chose it as our winner this week.
Thanks for the great read!
Our Loan Compliance Advisory Group is committed to helping “Protect The American Dream.” We are dedicated to helping Homeowners Nationwide, that may be victims of Deceptive Lending Practices.We are open for any suggestions on how we can help.
Several members of our Loan Compliance Advisory Group attended the “March on Wall Street.” We support the “Save Our Homes/Restructure Loans” important message that Rev. Jackson and his dedicated coalition members are spreading across America. The December 10, 2007 rally, one of several recently held across the United States, sponsored by Rev. Jessie Jackson’s Rainbow PUSH Coalition, the National Association for the Advancement of Colored People and the Urban League, was a magnificent well planned informative event.
Wow. This post was remarkably prescient.