Illegal immigrants get legal mortages

[almaty 19]

SEATTLE — When he came to Seattle from Los Angeles eight years ago, the married father of three young sons wanted to buy his family a home.

Nothing fancy — three bedrooms, in a neighborhood close to schools and with a yard big enough for the boys to romp about.

He'd landed a job in the construction industry that paid good money, and he had a tidy sum to put toward a down payment. But it's what he didn't have that worried him the most:

•A legitimate Social Security number. Advertisement

•A credit file.

•Legal immigration status.

"I was very honest with my Realtor from the start," he said. "I told him I didn't have a Social Security number, and that I was undocumented. He said it wouldn't be a problem."

Mortgages to illegal immigrants were rare in 1999 when he closed on a $144,000 house in Federal Way, Wash. But they have become more common.

After years in the U.S., often paying taxes and often at the same jobs, a growing number of illegal immigrants are seeking ways to achieve that quintessential American dream.

"Getting a loan should not be about immigration," said Arturo Gonzalez, housing director for Seattle's El Centro de la Raza, which operates a community-based program for helping illegal immigrants buy houses. "Do you work? Do you pay your bills?

"It's not illegal for an undocumented immigrant to buy a house in this country."

But the Federation for American Immigration Reform, a national group opposed to illegal immigration, believes federally regulated financial institutions should not be making loans to people in this country illegally.

"It's aiding and abetting — encouraging people who are breaking the law," said the group's spokesman, Ira Mehlman.

With all the controversy surrounding illegal immigration, lenders aren't leaping in large numbers to offer these loans.

So how did the man get his house in Federal Way?

Instead of a Social Security number, he used an individual taxpayer identification number — known as an ITIN — which the IRS issues to foreign nationals for paying taxes on money they earn in the U.S.

The man's employer wrote him a letter of support, and instead of a credit score, his history of paying rent, utilities and other bills served as his credit history.

With this, he got his loan.

It is not clear how many loans to illegal immigrants are being written across the country, as no single agency monitors this line of business.

However, among the nation's estimated 12 million illegal immigrants, demand is reportedly strong.

"There's huge demand for these kinds of loans," said Jean Withers, Northwest regional director at Acorn Housing, a Chicago-based community organization that operates a program to help low- to moderate-income and illegal-immigrant households buy houses.

"We have to remember that for people who leave family to come to the United States, and are able to buy a home, it is both a personal dream, a family dream and a sign of success."

The loans illegal immigrants get often are complicated, and despite statistics that show low delinquency rates — lower than in the traditional market — some lenders see them as unproven and risky.

In some cases, borrowers pay for that risk with interest rates from legitimate lenders that can be one or two percentage points higher than the prevailing market rate, and rates from predatory lenders that can be twice as high.

"That's a real problem," said Bruce Dorpalen, Philadelphia-based director of housing counseling at Acorn, pointing out that the interest rates on Acorn loans are at or below market rate.

In predatory situations, "people face rapidly escalating adjustable-rate mortgages, prepayment penalties, balloons and lots and lots of fees, junk fees."

[AnaAndDaniel 0]

ummm where would they get an illegal mortgage?

Daniel

:energetic:

Edited December 4, 2006 by AnaAndDaniel

[Canuck Carrie 1]

Gee, and all this time we're told they make $2/hr picking berries.

[payxibka 10,047]

Maybe I am wrong... I did not think it was illegal for a foreign national to own property in the US. I think they are confusing his immigration status with his ability to own property....

[AnaAndDaniel 0]

Maybe I am wrong... I did not think it was illegal for a foreign national to own property in the US. I think they are confusing his immigration status with his ability to own property....

i think you aer correct. but also there may be some illegalities tied to the loan being backed by the federal goverment, thus not lawfully available to illegal immigrants. i think that is the stickler.

Daniel

:energetic:

[almaty 19]

ummm where would they get an illegal mortgage?

Daniel

:energetic:

big Vito mortages and loan sharking....chicago illinois

[AnaAndDaniel 0]

ummm where would they get an illegal mortgage?

Daniel

:energetic:

big Vito mortages and loan sharking....chicago illinois

that is right. I've "forgotten" about Vito. B)

Daniel

:energetic:

[almaty 19]

Maybe I am wrong... I did not think it was illegal for a foreign national to own property in the US. I think they are confusing his immigration status with his ability to own property....

i think you aer correct. but also there may be some illegalities tied to the loan being backed by the federal goverment, thus not lawfully available to illegal immigrants. i think that is the stickler.

Daniel

:energetic:

that is correct...i think there are certain political elements in this country, who would like to stop this practice..i had a client, 20 years here illegal, he owns two houses

[mawilson 2,133]

What's a "mortage"? (sic)

[one...two...tree 2,762]

What's a "mortage"? (sic)

It's when your house payment kills you.

[Ban Hammer 13,633]

Gee, and all this time we're told they make $2/hr picking berries.

yeah, and doing the jobs americans don't want

[AnaAndDaniel 0]

What's a "mortage"? (sic)

It's when your house payment kills you.

close, but no cigar.

it is "death by age" . "mort" (death) "age"(age). B)

Daniel

:energetic:

[mawilson 2,133]

*wrong thread*

Edited December 4, 2006 by mawilson

[payxibka 10,047]

that is correct...i think there are certain political elements in this country, who would like to stop this practice

Her name isn't Hillary is it?

[Mr. Big Dog 10,747]

Gee, and all this time we're told they make $2/hr picking berries.

yeah, and doing the jobs americans don't want

Yeah, that's what we're told anyways while in reality they're the cause for many of those jobs having deteriorated in pay and conditions to the point where nobody here legally can afford to work them. They're fueling the race to the bottom and then there are so-called middle class advocates who actually cheer them on. Bottom line: You cannot be pro middle class and pro illegal immigrants and the expect to be taken seriously.