Mortgage Foreclosure Crisis

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Mortgage Foreclosure Crisis Michael Devitt Period 2. Final It’s a new year, the year of 2008. Some excited for all the things that are going to happen this year. Little did they know the economy will plummet, forcing massive numbers to foreclose, and many to be laid off. Few saw this devastation coming. The Mortgage Foreclosure Crisis was arguably the most significant for the economy since the Great Depression. It forced millions to lose everything they have and have to live in lower standards than ever before. Criminal acts have skyrocketed due to desperate Americans having nowhere else to turn to but illegal lifestyles. The Mortgage Foreclosure Crisis has set back our economy and the lifestyle of the average American has changed astonishingly…show more content…
It dropped the prices for homes and the value just plummeted at exponential rates. It all started back in the banks where our money is kept. They started to make too many subprime deals with zero down financed costs. They also ignored deteriorating credit standards. On top of this there was a lot of bad lending to people who had no chance of ever returning the loans to the bank. There were a lot of bad decisions made along with bad lending. People were living in their cars and this is below the standard of living set by the government. This was happening at the banks all over America and it became bad because of how often it happened. Also survey shows that lower income families, seniors, single parents, and colored people are a little bit more affected but everyone felt the ripple. This can be shown when Claudette said “It affected everyone but the average homeowner was affected the worst of…show more content…
This is a massive amount to lose on the value of a home. Almost every person’s biggest investment is the purchasing of their home. To have the biggest investment you have ever made to be cut by almost half the value is devastating. Another factor that comes into the decrease in value of a home is that than they are paying for more than the house is worth. If the house is being over paid for then the house will be greatly losing money each month. This will steer them into debt and soon be forced to foreclose. Claudette showed this when she answered “lost equity, plummeting housing market, and job loss. People couldn’t spend like they use to and had a new worry of keeping their job through the problem. ” This shows that there are many different variables affected when this happens to your home besides it just isn’t what it used to
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