The growing foreclosure crisis. Retrieved December 17, 2009 from: http://www.washingtonpost.com/wpdyn/content/article/2009/01/16/AR2009011604724. Grow, B., Epstein, K., & Berner, R. (2009). How banks are worsening the foreclosure crisis. Retrieved On December 17, 2009 from: http://www.businessweek.com/magazine/content/09_08/b420034085635.htm.
. As stated by Starr (2011), the recession of 2007-09 inflicted considerable economic hardship on the U.S. population. . A confluence of factors and economic events lead to the US economy falling into a recession that in its severity can only be compared to the Great Depression of 1929. The ranks of unemployment increased by an additional 8 million people between December 2007 and October 2009, with a... ... middle of paper ... ...rdination Group Publications Irons, J.
In 2006 the largest housing bubble we have seen in the past 50 years burst and in December 2007 the recession began. The recession would last for roughly 18 months, officially. However, some economists and citizens would argue that it lasted much longer than that due to the ongoing consequences the nation continued to experience all the way through 2010. Some would say we are still recovering from the recession. When the housing bubble burst the Fed responded by providing large amounts of liquidity to the economy to help soften the blow in the short term.
8 March 2009. 9 March 2009. < http://en.wikipedia.org/wiki/Wikipedia:Protection_policy> “Wikipedia survives research test”. BBC News. 15 December 2005.
"How to Solve the Foreclosure Crisis." There are many problems surrounding the world today. However one of the most eye popping problems is the rapid increase in the amount of foreclosures. Foreclosure is the legal and professional proceeding in which a mortgagee, usually a lender, obtains a court ordered termination of a mortgagor's unbiased right of redemption. A statistic poll from NeighborWorks America in 2005 reported that one in every 200 homes would be foreclosed and every three months, 250,000 new families enter into foreclosure.
Their hometown, Orem, has consistently had one of the highest annual increases in foreclosure rates in the nation. In the third quarter of 2009, one in every 136 homes in the United States had ... ... middle of paper ... ...I say) debt cancellation/reduction of their own, as necessary for them to stay in business. Once again, as Sachs stated above, the mortgage industries must show good faith and a solid plan for how they’ll approach debt reduction with homeowners before the Federal Government offers any financial support. The Government has the duty to perpetuate only those organizations that are willing to work towards a long-term solution in the public’s interest.
Now we have a seventeen trillion dollar debt deficit and we are wasting more food and material items now than we ever have. The debt crisis in late 2007 had people searching for jobs and finding out they might just not be able to provide. When tough times like these occur the government assistance and the states help is necessary. If half of the country is on some type of government assistance then how is half of our country covered by things we waste? During the end of 2007 the unemployment rate spiked from just under five percent to over seven in the course of one year and was expected to spike in the coming months.
“One out of every two hundred homes will be foreclosed every month, making 205,000 new families enter into foreclosure,” Mortgage Bankers Association. The housing industry in the United States is undergoing an unfortunate crisis. There are way too many homes being foreclosed, which cause a ripple of problems. President Obama has been brave to take office in a time of need. Creating plans like the Recovery Act is a wonderful start in fixing this problem.
What caused the Great Recession that lasted from December 2007 to June 2009 in the United States? The United States a country with abundance of resources from jobs, education, money and power went from one day of economic balance to the next suffering major dimensions crisis. According to the Economic Policy Institute, it all began in 2007 from the credit crisis, which resulted in an 8 trillion dollar housing bubble (n.d.). This said by Economist analysts to attributed to the collapse in the United States. Even today, strong debates continue over major issues caused by the Great Recession in part over the accommodative federal monetary and fiscal policy (Economic Policy Institute, 2013).
Each home that is a casualty to a foreclosure, short sale or even bankruptcy is secured as collateral for the lender holding the promissory note. The consequences tend to come at a cost for the lender selling the property but a deal for the buying investor. The costs incurred and the losses experienced by the affected financial institutions have resulted in evaluating their business models to account for the realized risks that these foreclosures have caused. Governing financial agencies are implementing and enforcing new regulations to mitigate further losses for financial institutions and ultimately protect the consumer. The losses caused by the outbreak are shaping a new environment for property finance.