The Federal Housing Authority ( Fha )

1729 WordsMar 16, 20177 Pages
Not only did blockbusters manipulate neighborhoods, they also affected the credit markets in Kansas City, making it difficult for blacks to find fair mortgage rates. Large down payments and notes were given to blacks who were never able to keep up with payments. These families’ homes were quickly foreclosed on, and then real estate brokers would quickly sell the home to another black family who was also unable to keep up with payments. This cycle would continue, and the broker would sell the house over and over again (Colby 76). I wonder what happened to these families that found themselves in over their heads and then were left homeless. Where did they turn? What were their options? The Federal Housing Authority (FHA) was not helping…show more content…
For these things to work, it not only takes compassion, it takes honest people. The interest rates alone became a huge problem for the mortgage holders in Kansas City. Molly Fleming-Pierre, the policy director for Community Creating Opportunities in Kansas City stated that “Our residents, in just Kansas City, are paying 26 million dollars every single year in interest alone” (qtd. in We Are Superman). People cannot continue to pay such a large amount. The advantage for people in buying a home is that equity is built in something of great value. But with such high rates, these families put a huge portion of their house payment into paying the interest. It’s difficult for families to pay off a home with so little of it going to principle. Payments can be made for years and there still be so much owed for the home. This makes it impossible for them to get ahead on payments. Families cannot afford to sell the home, save more money, and move into a better, safer neighborhood with quality schools and convenient shopping. Another advantage of buying a home is paying it off and eventually living in something that is completely paid for. Without monthly house payments, money can go towards retirement and other items to better lives. But high interest rates make this dream much more difficult or even impossible to achieve. Devah Pager and Hana Shepherd analyzed multiple studies of discrimination in the United States.
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