Minorities on Long Island Hit Hard by Foreclosed Homes Sale

In the 11 Long Island communities with over 10 percent of houses in foreclosure or in foreclosed homes sale, 9 communities are populated mostly by minorities, as shown in the 2000 census charts.

The communities most battered by foreclosures and foreclosed homes sale activities in the region studied were Roosevelt, Freeport, Uniondale, Hempstead, Wyandach, Brentwood, Islandia, Central Islip and Mastic Beach, according to The Times foreclosure study conducted over a period of 44 months from 2005 to August 2008 in New York City, Long Island, Western Connecticut and New Jersey. These hard-hit communities are populated mostly by minorities, except Mastic Beach and Islandia.

As found in other areas of the region, more black and Hispanic Americans are losing their homes to foreclosure than whites and other minorities. In communities mostly populated by Latinos and blacks, over 13 percent of houses were in foreclosure or in foreclosed homes sale over the 44-month period of study, more than quadruple the rate in communities mostly populated by whites.

The information has worried housing advocates, especially on the long-term effects on the conditions of neighborhoods and the concentration of adversities in particular areas.

Nationwide, a Pew Hispanic Center study also showed significantly higher foreclosure rates in counties mostly populated by minorities. It found that in counties where more immigrants are residing, more housing units in foreclosed homes sale were counted.

Pew researchers also found that more blacks and foreign-born Latinos lost their properties to foreclosed homes sale because many of them in the past decade took out subprime loans and many of them were able to buy homes just because their sources of income were not thoroughly screened.

Celia Camacho, a housing counselor working for the Nassau County Homeownership Center, and other counselors said that many homeowners are distressed now because they took out adjustable rate loans with the mistaken belief that they could refinance their loans at a lower rate.

As the counselors work with troubled homeowners, they begin to discover that many took out subprime loans with high mortgage rates, took home equity loans to pay for other expenses and to fund small businesses and signed mortgage papers without realizing that the monthly payments would increase significantly.

Others lost their units to foreclosed homes sale because they lost their jobs, went through divorce or were hampered by disability.

Roy Lester, a lawyer who deals with properties in foreclosure or in foreclosed homes sale in the region, said there are many homeowners who really could no longer sustain payments. He said that it is understandable for people to try anything to save their homes, but they should make sure the homes are worth saving.

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