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Mortgage/Housing Crisis Hits Latinos: The Press Spins it Again!

by Joshua Dorkin on January 8, 2009 · 7 comments

  

The Associated Press just released a troubling article regarding the Latino community and the housing crisis. If you were to glimmer through the headline and a paragraph or two, you’d think that Latinos are helping drive the housing crisis as a whopping 9 percent happen to be behind in their mortgage payments.

Nearly one in 10 Latino homeowners fell behind in mortgage payments last year, and about 3 percent said they had received a foreclosure notice, a Hispanic research group reported Thursday.

The Pew Hispanic Center’s survey of Hispanic adults found that 9 percent said they missed a mortgage payment or made a partial payment during the past year.

We’re going to see article after article about this study, and the press will likely put their usual spin on the situation.

Sometimes Bad News is Actually Good News

What most people who see this and the other media pieces won’t get to is the part of the article that tells us that the Latino community is actually handling itself better than the US as a whole.

The strain felt by Hispanic homeowners seemed consistent with that of all U.S. homeowners. The Mortgage Bankers Association reported last month that a record one in 10 American homeowners with a mortgage was at least one month behind on payments or in foreclosure at the end of September 2008.

So, why is the press not pointing out the fact that there is a 1 percent gap between the rate at which Latinos are faltering and the rate that Americans in general are faltering? Obviously, if you remove the margin of error, there probably isn’t much of a difference in these rates, but why do we have to point out certain communities?

What is shocking is that despite being targeted with subprime and other exotic loans, this community is faring pretty well relative to the rest of the country.

How about the mainstream press write about that?

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{ 7 comments… read them below or add one }

RSmith January 8, 2009 at 11:17 am

It seems they are trying to gain readership by controversy or ignorance.

Reply

Lani Rosales January 8, 2009 at 1:39 pm

Why don’t they subdivide mortgage applicants so we know if the massive increase in mortgage applications can be attributed to Latinos? What portion of the few succeeding commercial real estate investors are Latino? How many privately owned homebuilder companies that have NOT folded and are keeping a steady pace are owned by Latinos? What percentage of Latinos have NEVER made a late payment on their loans?

Ridiculous.

Lani Rosales’s last blog post: Is Social Media Urban Sprawl Possible?

Reply

Joshua Dorkin January 8, 2009 at 2:45 pm

I’m with you here, Lani and RSmith. I guess it is all about divide an conquer.

Reply

Anna Rasberry January 9, 2009 at 6:07 pm

I think the media distinction between Latino and American mortgage defaults are astounding. Maybe they should show both sides of the story instead!

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Anna Rasberry
Remax Realty Services Inc

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Minthis Hills January 10, 2009 at 1:52 am

This problem is eating into every real estate market world wide. The reality has to be presented as a true story not spun to suit some sections.

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bill arce January 12, 2009 at 6:35 pm

This is typically case of a misinformed media article made with the purpose to confuse people.

What they won’t say is that many Latinos were misled on their mortgage application for unscrupulous professionals. That Latino where prey upon because the language barrier, allowing the 8 year old daughter to “translate in the settlement” or that many Latinos are being pray much early in the finance game by credit cards and auto finance companies.

But this is what we are learning from this mess.

1: As Latino professionals we are committed to the NAHREP code of trust (nahrep.org) En Confianza.
2: As professional we are committed to help the Latino community be the next buying force who will drive the real estate market as did the baby boomers.
3: As Latino professionals we understand that the real crisis we are in, is the crisis of TRUST, and that we as NAHREP members are going to work to change this because very soon we are going to be the majority on this country and we are here to embrace the many great opportunities that the USA has to offer to everyone.

Gracias,

Bill Arce
RealEsteLatino.com

bill arce’s last blog post: Familiarícese Con El Proceso de Préstamo

Reply

Parveen Saini January 23, 2009 at 1:03 am

This all has been due to the fact that there has been recession period going on in the whole USA and Europe, which has contributed the most in my unemployment, and this is holding back all of the companies, professionals and personnels’ in getting ahead..

Reply

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