In the midst of the ongoing financial crisis, homeowners are looking for any way to ease their burdens, and the government has implemented several programs to help make it possible for borrowers to get the loan modifications they need from banks in order to keep their homes.  However, statistics have recently emerged that indicate that the federal economic recovery plans currently in place in the United States are not doing enough to help minority populations cope with the myriad problems the financial crisis has created.

One member of House Committee on Oversight and Government Reform stated that for many racial and ethnic minority groups throughout America, the current recession is in fact a new Great Depression.  For African-Americans, Hispanics and American Indian populations, for example, the jobless rate ranges from 13 to 22 percent, which is well above the national average of 9.7 percent.  The current foreclosure crisis has also disproportionately affected minority groups.  For instance: in the state of Maryland, two districts populated predominantly by minority groups account for 26 percent of the state’s population but 42 percent of its foreclosures over the past year and a half. 

These unsettling statistics can be traced in part to the behavior of lenders and banks before the nationwide recession began, when the majority of subprime mortgages—risky loans with the potential for very high interest rates—were marketed to members of minority communities.  With the crisis came rising unemployment and loss of income, leaving many households unable to meet their mortgage payments as interest rates continued to increase.  The same lenders who targeted minority groups for subprime mortgages are refusing loan modification requests, and now minority homeowners are faced with the threat of foreclosure with no tangible signs of relief from either mortgage servicers or federal programs.

Congressional committees are working to rectify the oversights of the current economic plans, from increased, targeted economic stimulus to strengthening federal minority business opportunities.  Still, even as the government debates the best way to channel more assistance to homeowners, many members of the minority communities who need loan modification or other assistance the most are finding it hard to come by.  A loan modification would afford these individuals the opportunity to get a lower monthly mortgage payment, something that would help the economy in the short term and help homeowners in the long term.

Discrimination certainly played a role in the economic collapse, and it must be overcome in order for Americans to move past the current financial crisis.  A skilled California loan modification attorney can assist homeowners—regardless of their racial or ethnic background—navigate the intricacies of the loan modification process.  Whether you need help dealing with your mortgage servicer or advice regarding paperwork and procedure, our team of experienced loan modification attorneys can supply you with the information and help you need as you fight for your home.  Contact a California loan modification attorney today to learn about your options and see how we may be able to help you protect your family’s financial future.