African Americans Turn to Predatory Lenders for Florida Mortgages

In 2002, a study released by the Center for Community Change, “a national interest group,” found that African American borrowers in Sarasota and Manatee counties were consistently given “sub-prime refinance loans.” One reason the Charlotte Observer gave for this disparity in granting of Florida mortgages is that on average, African Americans “have less wealth and more credit problems.”

Regardless of whether there is a legitimate reason or racism is still at the core of these sub-par Florida mortgages, African Americans find themselves increasingly turning to nontraditional lending venues in order to purchase a home. “Those avenues tend to employ predatory lending practices,” and not surprisingly, predatory lending is a huge problem in Manatee and Sarasota.

Unfortunately, most people who turn to predatory lenders for Florida mortgages are also not sufficiently educated in the home buying process to realize they are being taken advantage, and what started as a poor credit history can turn into a full blown financial fiasco.