Predatory Lenders

Recently, the Minneapolis Star Tribune published an article titled, Foreclosure: They were preyed upon. This story highlights yet another example of the housing and economic crises many Americans are facing. Approaching this topic from a different angle, this story describes the experiences of a couple that owns a home – they also have intellectual disabilities. Ultimately, managing life on a fixed income and giving into relentless predatory lenders, these homeowners lost everything.

A social worker of one of the victims stated in the article, “In hindsight, more oversight over their finances would have been appropriate.” This notion was supported by Beth Fondell, from Arc Greater Twin Cities, she said "If there was more prevention, up-front support and dollars invested, people like Dave and Kathy would be able to be as safely independent of the system as possible." Unfortunately, these supports were not in place and an October 14th auction is scheduled to sell the house.

Though everyone I’ve discussed this with found the incident to be sad and unfortunate, I have noticed mixed reactions. Some viewed this as an example of a lending industry that would do anything to anybody to make money, regardless of a person’s vulnerability. Yet, some also questioned why this couple was allowed to purchase a home in the first place, since they both have an intellectual disability. They felt those supporting them, such as social workers and family members, should not have allowed them to get into a home loan – period. What about self-determination and homeownership? Do people with intellectual disabilities have the right to take the same risks as many Americans chose to take?

To read this article go to: http://www.startribune.com/business/29844484.html?elr=KArksUUUU

This post is courtesy of Derek Nord