The National Association of Realtors (NAR) yesterday expressed its concern over the continued increases in default and foreclosure rates, and many of its members are troubled with the risks and consequences associated with exotic loans, particularly because many borrowers aren’t aware of them.

NAR says the negative effects of increasing foreclosure rates spread much further outside the families who defaulted; the communities where foreclosures are occuring at high rates also take a hard hit.

“Foreclosures can lead to high vacancy rates, which, in turn, can cause all homes in the
neighborhood to lose value,” said Pat Vredevoogd Combs, NAR president and vice president of Coldwell Banker-AJS- Schmidt.

NAR has been working diligently to educate consumers on the different types of mortgages as well as predatory lending. In conjunction with the Center for Responsible Lending (CRL), NAR has produced and distributed three brochures on these very topics. And yesterday, Combs held a conference call with the CRL and the Leadership Conference on Civil Rights to push borrower education before taking out loans to buy homes.

“We are committed to helping people buy—and keep—the home of their dreams, and an educated consumer really can make the best decision,” said Combs. “Realtors(R) help Americans achieve the dream of homeownership. We work to ensure that homebuyers have access to the proper information so they can fulfill their homeownership goals.”