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Properties Under House Auctions for Sale High Among Hispanics

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By : John Cutts    99 or more times read
A recent research report claims that majority of mortgage loans owned by Latinos and Hispanics in California have a higher possibility of ending up in foreclosure compared with other groups. The study from a nonprofit organization states that Latin American property owners are most likely to see their homes ending up in house auctions for sale.

According to the study conducted by the nonprofit group Center for Responsible Lending, a big percentage of foreclosed properties in the state, including Los Angeles bank owned homes, are accounted for by Latino and Hispanic borrowers. The organization made the conclusion after analyzing data from mortgage servicing firms and government agencies.

The report stated that during the period October 2006 to November 2009, almost 50% of foreclosure homes for sale in California were owned by Hispanic and Latin American borrowers. However, the same group accounts for less than one third of California's mortgage borrowers during the period 2004 to 2008, the time when these mortgage loans were likely taken out.

In addition to Latin American and Hispanic residential property owners experiencing high percentage of foreclosures and dwellings ending up in house auctions for sale, the study also revealed that African American residential real estate owners in the state are experiencing high rates of foreclosures which are considerably disproportionate when compared with the total number of African Americans who have taken out mortgage loans.

According to the nonprofit study, African American mortgage holders account for only 6% of loan mortgage originations, but around 8% of properties under listings of foreclosed properties were owned by these borrowers. In comparison, Asian borrowers account for almost 12% of all mortgage loans in the state, but only 6% have encountered foreclosure problems during the period in focus.

When it comes to non-Latin American or white mortgage borrowers, they account for one third of California's foreclosures and almost 50% of the total number of mortgage loans in the state. With these statistics in mind, the authors of the study have recommended improved funding efforts for mortgage counselors and legal service providers who speak Spanish in order for them to help Latino and Hispanic borrowers avoid having their residences end up in foreclosed house auctions for sale.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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