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Business
Speakers share fair housing tips at forum By Laura Keeter | Daily Times Staff Writer If you rent, it's not legal for a landlord to charge different security deposits for the same unit -- no matter if you have children. If you are buying a house, never take a loan that's lower than you qualify for because of a "teaser rate." Tips like these people learned Tuesday at a Fair Housing Forum in City Council Chambers. Four speakers covered some of the common pitfalls that consumers are protected by under the Fair Housing Act, which prohibits discriminatory practices in the sale, rental and financing of housing that is based on race, color, national origin, religion, sex, or familial status. For instance, a landlord can't segregate within a complex, said Renee Smith, director of the Wilson Human Relations Commission. For tenants facing eviction, it's best to remove their personal belongings before the eviction happens, said John Keller, attorney for Legal Aid of North Carolina. But by law, a tenant still has 10 days after eviction to remove personal items. After a tenant moves out, the landlord has 30 days to determine whether they are returning the security deposit or whether damages account for deductions of that deposit. The tenant may even owe money, he said. Keller advised people moving out have a witness to see how they are leaving the place and to also take pictures of the emptied apartment. Subprime loans aren't always a bad product, said Richard Bolden, attorney for The North Carolina Human Relations Commission. The loans are given out to people who don't qualify for a prime loan, but the loans do have higher interest rates. Subprime loans helped a lot of people and also became extremely profitable for financial institutions. Predatory loans may or may not be a prime loan, he said. A predatory loan is a loan that has worse terms than the lender could have qualified for, and the lender didn't care if you could make the payments or not. Some people took out loans that had a "teaser rate," such as 2 percent interest for the first two years. However, when the loan reset, the loan was at the new market rate for that loan, such as 15 percent. The consumer's payment has probably more than doubled. "Suddenly, it's a disaster," Bolden said. "Look for the reset numbers on any kind of variable rate loan." The best kind of have limits on amount they can reset, such as not up or down more than 2.5 percent, he said. Bolden also warned consumers against fraudulent fees incorporated into some predatory loans that add up to hundreds. Some consumers get into trouble because they take out a loan with the understanding that in two years they would build up their credit and be able to refinance into a better loan. However, that only works if the housing market is going up and they quickly build equity, he said. If the market is doing down, and all of a sudden you owe more money than the house is worth, you may not be able to refinance and then the loan resets at the higher rate. "If you qualify for a better loan, get it now," he advised. Right now, housing prices in Wilson are still fairly stable, said Toshika Smith, president of the Wilson Board of Realtors. Wilson didn't have a housing boom, so it won't have the housing bust, although there will be some effect here, she said. "I suspect with the increasing number of foreclosures we'll see prices begin to drop. Also, we are in a buyer's market. We have a lot of inventory." Deana Dawson, housing coordinator for Wilson Community Improvement Association, said most the clients she sees are in foreclosure, and many got there because they lost their jobs. Help is available, but she advised people make their payments on time and seek out help early. "The trouble we're having is getting to the clients before foreclosure," Dawson said. "They have a basketful of letters from the lender that haven't even been opened, and they've got foreclosure papers in there." keeter@wilsontimes.com | 265-7817
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