So cash-strapped homeowners with sub prime loans, who cannot sell, are more likely to default, say experts such as Dr. Wold Zemedkun, professor of finance at Norfolk State University.
"In a sub prime lending situation, it's a time bomb situation," said Zemedkun, a professor of finance at NSU for the past 21 years.
"The minority community is disproportionately tied into sub prime loans.
"The demand (for houses) will be fiercely reduced for around six or eight months or a year.
Some homeowners will be unable to pay, and there will be foreclosures."
Still the African American housing market is an emerging market.
"It wasn't there before," Zemedkun
"But this creativity will not die," Zemedkun
predicted, pointing to the positive side of sub prime loans.
Aimed at segments of the population which would not have otherwise qualified for home loans, they are called SIV, structured investment vehicles (SIV).
Translated, SIV means high risk in loan circles.
Still, such loans will reemerge in new forms, Zemedkun
The down side of the disaster, Zemedkun
added, is that "it will be harder for people to qualify in even a sub prime market.
There will be tight money."
"But this creativity will not die completely," he