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How Many Home Auctions For Sale Belong to African American Homeowners?

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By : John Cutts    99 or more times read
African Americans reportedly account for a large percentage of homeowners suffering from the problem of foreclosure home auctions for sale in the U.S. According to NeighborWorks America, a big number of African Americans also sought counseling for foreclosure mitigation under the National Foreclosure Mitigation Counseling (NFMC) program.

In the whole country, only nine percent of homeowners are African Americans. Among this nine percent, majority are facing foreclosures or have their houses under bank owned property listing. The NFMC has reported that among their clients holding mortgage loans with interest rates of eight percent or over, more than 35% are African Americans. This is despite the fact that only 20% of the countryís subprime mortgages are held by African Americans. There are also more than 60% of African American NFMC clients who hold fixed rate mortgages.

The report from the mitigation program operator also revealed that low income homeowners are at greater risk of facing foreclosure starts and are likely to have repossession homes than homeowners with higher income. Thirty percent of NFMC African American clients are said to be earning below the Area Median Income.

According to market analysts, the problem of foreclosure home auctions for sale is disproportionately impacting African Americans; they are also likely to have high mortgage loan costs. NFMC officials have stated that they are increasing their efforts to provide help to these homeowners.

Nationwide, more than 50% of homeowners who have sought the help of the NFMC are minorities, with African Americans accounting for the largest percentage. Ethnic or minority households account for 21% of the nationís homeowners, with Hispanics coming in second to African Americans at eight percent.

Because a large percentage of African American homeowners are seeking foreclosure mitigation advice, officials have stated that this could be a sign that a lot of them are already facing the initial stages of foreclosures.

Officials from the government program have encouraged all minority homeowners who are facing foreclosure home auctions for sale problems to get in touch with the NFMC early on to prevent the possibility of foreclosure and to find alternative ways by which these owners can keep their homes.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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