| Minorities in US hit hardest by housing crisis
In May, Alvin Clavon received a foreclosure notice on the simple, Spanish-style house in South Los Angeles that he shares with his wife and three boys. Clavon bought the place in 2003 with a fixed-rate loan. They painted the walls, fixed the yard and made friends with the neighbors, who let the Clavon boys pick their basil. In 2005, worked with a mortgage broker to refinance his home with another fixed-rate loan. But on the night before signing, the family was offered an interest-only, adjustable-rate mortgage. Clavon, a 35-year-old executive assistant at a bank, said he felt stuck. The ball was rolling, he trusted his broker and so the next day, he signed the loan. "Turned out to be the worst thing I could have done," said Clavon, who like so many others in danger of losing their home to the U.S.
Federal Judge tosses lawsuit by Norfolk couple who lost home
A federal judge has dismissed a lawsuit in which a couple claimed a home mortgage broker tried to trick them out of their house. The lawsuit was transferred to federal court after it was filed in Norfolk Circuit Court last year. Marion and Vivian Johnson had said they sought help from D and D Home Loans when financial troubles caused them to miss payments on their house. They said D and D President Warren Mike Robinson and an investor named Jason Washington told them the only way to refinance was by signing away the deed to their house and using a private investor to obtain a new loan. Then, they claimed D and D left them with higher payments and, when they fell behind, attempted to evict them from their home. In a ruling entered Wednesday, U.S.
Australia will cope with sub-prime fallout: Swan
TREASURER Wayne Swan says Australia remains well placed to deal with the global economic fallout from the US sub-prime housing market crisis. US President George W Bush overnight unveiled a wide-ranging mortgage relief package which he said could help up to 1.2 million distressed homeowners. The plan, brokered by US Treasury officials with major industry participants, aims to help struggling homeowners refinance sub-prime adjustable-rate loans or freeze the current interest rates for five years. The program was unveiled amid fears a rising tide of home loan defaults would lead to a surge in repossessions and have a cascading economic impact. Mr Swan said the US sub-prime housing market woes remained a concern for Australia, primarily because it was causing liquidity in global financial markets.
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