ABC News Chicago
July 25, 2007
…The American dream of buying a home isn't as easy as in some Chicago
communities. Geoff Smith is the research director for the Woodstock
Institute where they track financial services in Chicago's minority
communities. He says foreclosures have gone up 50 percent since last
year and he says that only makes it harder for low income families
trying to buy or keep a home.
"It's going to be more difficult for borrowers who are having
problems with their mortgage to refinance their loan because credit
terms are going to be more restrictive. It's going to be more difficult
for them to sell their homes because there is a much larger supply of
homes on the market," said Smith.
In addition to sub-prime lenders aggressively marketing their
mortgages to those who couldn't afford them, sometimes a job cutback or
illness may put homeowners behind in payments. If that happens, housing
experts recommend calling the lender immediately to work out some
arrangement to change terms or work out a way to get up to date.