Minority communities in Illinois have a high foreclosure rate

The Consumers Union and the Center for Responsible Lending have proposed that states adopt what they are calling a "Homeowner Bill of Rights" to protect homeowners. One of the major provisions of such a Bill of Rights would require lenders to completely follow through on a homeowner's loan modification request before even considering filing a foreclosure. As it stands now, lenders are able to do both at the same time putting a homeowner in an untenable situation.

 

There are very few neighborhoods, if any, around the country that haven't been affected by the housing crisis. However, some neighborhoods have seen a higher foreclosure rate than others. Many of the homeowners in those neighborhoods that have been the hardest hit are predominantly minorities. As a matter of fact, an astounding 52 percent of all foreclosures in the nation have involved minorities. Along with our nation's capital, Illinois is one of seven states that have the highest proportion of minority homeowners that are either facing imminent foreclosure or have already lost their home to foreclosure.

The proposed Bill of Rights for homeowners would hopefully equalize these numbers. Homeowners would have the right to file an action to stop a foreclosure if they are able to show that the lender did something illegal. The lender would not be able to continue to foreclose the property until and unless they complied with all applicable laws.

 

In the absence of a Homeowner Bill of Tights, many families are struggling to keep their homes. Bankruptcy may make sense for many minority families in Illinois that are still struggling and need to see some light at the end of the tunnel. Filing for bankruptcy would halt a foreclosure and possibly give homeowners the chance to save their homes.

 

Source: blackvoicenews.com, "Homeowner Bills of Rights Emerge as Remedies to Foreclosure," Charlene Crowell, May 29, 2013

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