Private Equity: The New Neighborhood Loan Sharks Veterans of the Contract Buyers League hit the door

[turbinetree]

Mike Gallagher double-checks the address on his smartphone and walks up the cement steps of the brick two-story house on Detroit’s west side. He rings the doorbell, and after waiting a minute knocks loudly on the door. A dog barks and a shirtless black man in his mid-thirties cracks open the door.

“Good afternoon. I’m Mike from the Home Savers group. We’re talking to people who have a land contract from Harbour Portfolio. Is that your situation?”

“Yes,” says the man, whom the visitor may have just woken up. He cautiously looks at Mike, who is white with unruly short white hair.

“A lot of people are finding these rent-to-buy loans may not be such a good deal. Sometimes they’re worse than being a tenant, since you have to pay for all repairs and maintenance. But you don’t build any wealth until you make the last payment. How long is your contract loan?”

“Thirty years.”

http://prospect.org/article/private-equity-new-neighborhood-loan-sharks

3

[tech3149]

1. I wish more people understood issues like this

I spent a good portion of my life in rental housing and my access to home ownership came at a significant cost but my wife and I understood the risks. I have no love for these predators that prey on the needs and aspirations of people that don't have the same advantages that we did. I'm not easily driven to violence but issues like this really push me to the limit.

[turbinetree]

2. This should be on the national news with a one hour special, and a show that brings forth current

events such as this on weekly basis