Borrowing Trouble (4/12/07) - WDRB 41 Louisville News

Borrowing Trouble (4/12/07)

Late last year, almost two percent of all residential mortgages in Kentucky were in foreclosure. That was the fifth-highest rate in the nation.

In Indiana, the figure was closer to three percent - bad enough for second place nationally.

What's the explanation?

Well, certainly, some lenders are actively predatory - deliberately deceiving people with undisclosed terms and hidden fees.

But even in the majority of cases -- where the lenders are completely honest and responsible -- far too many adults these days are woefully under-informed on major financial issues.

They don't know the difference between fixed- and adjustable-rate loans. They don't anticipate possible future financial setbacks. They don't consider their current level of debt when deciding how much more they can afford to assume.

In short - and I hate to say this -- they're economically illiterate.

But there's no shame in that. All of us are uninformed on some topics. The only shame is in failing to ask questions when you need information.

If you're thinking of buying a home, there are people locally who can help you answer those questions. You can call The Housing Partnership at 585-5451. Or the Louisville Urban League at 566-3362.

But whatever you do, be informed. That way, your dream of home ownership won't turn into a nightmare.

I'm Bill Lamb, and that's my...Point of View.

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