Jesse Jackson speaks on Mid-South foreclosures - WMC Action News 5 - Memphis, Tennessee

Reported by Ben Watson

Jesse Jackson speaks on Mid-South foreclosures

For the first time, the men who helped lead the civil rights movement are talking about the alarming foreclosure rate here in the Mid-South.

Calling the high rate of foreclosure an economic tsunami Reverend Jesse Jackson offered this advice to home owners facing foreclosure...

"The first step is to acknowledge that they have a  problem and stop getting re-financing," Jackson said.

Jackson encouraged homeowners struggling with ballooning mortgage payments to seek restructuring instead of re-financing. He blames the mortgage crisis on lending institutions that mislead buyers with sub-prime loans.

"It's a horrendous scene and we need got intervention not just to save the home owner but to save the economy itself," Jackson said.

Jackson said as more homes are foreclosed on, cities like Memphis will lose millions in unpaid property taxes.

"And that's why you have to have some plan to stop the hemorrhaging to stop the hemorrhaging," Jackson said.

Jackson is calling on Mayor Herenton and other mayors around the country to sue lending institutions that have made unscrupulous loans to home buyers.

In the coming weeks, Jackson will try to bring Memphis lenders together with homeowners in an attempt to avoid more foreclosure in the future.

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