Posted on 10/08/2007 8:54:00 AM PDT by LNewman
Soledad Aviles dreamed for years of owning a home, with a plot of land where he could grow corn and chiles as he did in his native Mexico. So he felt blessed last year when he learned he could buy a three-bedroom, single-story stucco house on West La Verne Avenue in Santa Ana.
Referred to a local loan broker by a trusted friend, he borrowed the entire purchase price of $615,000 from Washington Mutual at a high interest rate typical of sub-prime loans. The monthly payment, as he says he understood it, would be $3,600 -- steep for a glass cutter who made $9 an hour -- but Aviles counted on his wife and three of his six daughters, who also worked low-paying jobs, to contribute.
"We took out our pencils, figured out our take-home pay and figured out that if we all pitched in, it would work," said Aviles, 54, a stoop-shouldered, soft-spoken man with a sixth-grade education from Mexico.
Relying on the broker's word, he signed loan documents written in English, a language he neither speaks nor reads, Aviles said. He was shocked to learn afterward that the monthly payment would not be $3,600, but $4,800 -- a price that forced him to rent out bedrooms, the garage and an enclosed porch while he and his wife slept on the couch. He fed his family with food from friends and corn he grew.
... The state Department of Real Estate, nonprofits and the Mexican consulate also have reported a rise in mortgage complaints, many of them from homeowners saying they signed documents they didn't understand.
(Excerpt) Read more at latimes.com ...
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
What's Spanish for "straw purchase"?
What kind of idiot lends $650,000 to someone making $360 a week?
Bears repeating!
Nice, isn't it? These criminals repeatedly break the law -multiple laws- and get a pity party.
I still can't understand why a lender would hand over that much money to people the have no possible way to pay it back.
Wait until it says, “...predominently Latino Beverly Hills...”
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Oops, that was $750,000 not $75,0000.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
How about adding racist stereotyping to the list; he’s a reputed gardener and his daughter’s a fictional housemaid?
And what kind of moron lends it to him?
A crook
Agreed! All this financial glad-handing of illegals is coming home to roost with the chile peppers, corn, tamales, etc.
Remember all those glowing articles not so long ago about "Hispanics" transforming the housing market?
The application lists their yearly income as $157,000, when, according to Aviles, it was really closer to $60,000
This was probably a mortgage broker who falsified the application before sending it to his investor pool. All the investor saw was the borrower was going to be paying a higher interest rate and on paper it was a good investment.
ping
What makes you think they’re using the sewers? Has something changed?
But think of all that fresh corn ... and chile peppers ... right outside their back doors!
So, it wouldn't have mattered even if his payments remained at $3,600 per month. Unable to work for the last year due to kidney disease is the real reason he's being kicked out and has nothing to do with the mean mortgage company.
I took a lot of heat here at FR a year ago when I pointed out that the coming subprime meltdown was an illegal alien problem. I repeated it again in March when the subprime fiasco started to ease into the news.
For elucidation, and with a little smug “I told you so”, I am reposting it below. Pretty damn well on the mark - even to the housing price numbers. I will await your attaboy replies.
#######################
To: A. Pole
Gotta hand it to the MSM, the WSJ, the Chamber of Commerce, the Fed, the banks, the White House, the Congress, and all the rest of the usual suspects.
These mortgages go to someone. They have a mailing address. By artful writing and punditry, the picture has been painted that the people who got these subprime loans are poor folks or dumb boomers who re-financed to buy their new Volvo and swimming pool.
Those cases are few. Those mortgages issued in the last several years that are now facing foreclosure have gone to illegal aliens, landlords who rent to illegal aliens, and minorities who have lost jobs to illegal aliens, especially African-Americans in the trades and services industries. The common thread - illegal aliens.
The distribution of subprimes going into foreclosure closely matches the concentrations of illegal aliens - California, the southwest border states, the southeast states, metro areas like Denver. Many of these mortgages were granted to buyers with no SS number or a stolen number or just a taxpayer ID number (ITIN). Who is that group? Not blacks; not boomers. Not even speculators. Who’s left? You figure.
Some common scenarios: An illegal, actively recruited by banks or mortgage lenders, buys a house, often an expensive house ($600,000). If he can’t qualify, he gets other illegals added to the mortgage until they qualify. Or a profiteering landlord buys a house with the intent of setting up a dorm house for illegals. With 10-20 illegals crowded in at $300-400 rent, he makes a tidy profit even with a big mortgage payment.
Like Ponzi, it was great for everybody. The realtors (often Hispanic themselves) made big commissions. The underwriters and brokers took their cut and moved on. The banks made big profits on the high interest. So did the REIT and funds managers. The landlords also did well on rents and house appreciation.
Then the housing bubble burst. The illegal renters started losing work and were evicted. The teaser rates and balloons expired. The landlords couldn’t service the mortgage and/or with lowering values the mortgages went upside down so it was easy to walk away and foreclose.
But that’s not the big story. It’s how effective the cabal of power brokers from the White House, the Chamber of Commerce, the MSM, the Congress, the banks, the CEOs, and the unions have covered up this causality so that they can get amnesty and open borders rammed through to guarantee an unending supply of cheap alien labor.
They know that if the connection between illegal alien hordes and the subprime collapse and the damage to the economy worse than the Savings & Loan scandal of the 1980’s, the people will be outraged and demand we close the borders.
Can’t have that. Let’s keep the sheeple in the dark. They’ll be the suckers paying for it in the end with lost jobs and higher taxes. The real villians have already made their fortunes.
23 posted on 03/17/2007 7:24:11 PM PDT by oldbill
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.