From Carol Lloyd in the Chronicle, a shocking article about the minority-group victims of predatory realtors and lenders who make up part of what we've been calling the sub-prime crisis. Seems that real estate contracts are exempt from rules requiring translation into Spanish, and that many Latino home-buyers have no idea what they're getting themselves into. We've had weeks of talking heads and punditude about deadbeat home buyers, but very little about the selling techniques of realtors and lenders, and the pressure potential buyers are under. Realtors and lenders work together to make the deal happen, it's becoming clear that full disclosure by these parties may not be optimal. Buying and owning a home an emotional decision, but for the past few years, realtors have been touting home ownership as wealth creation. It's a bad mix and a tough lesson for unsophisticated buyers. So what component of the sub-prime crisis is due to realtor-lender fraud? Hilarious thought for the day: The last recession got blamed on dotcommers and terrorists. Will the next one be blamed on realtors and mortgage brokers?
· Minorities are the emerging face of the sub-prime crisis {Carol Lloyd/SF Gate]
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