In order for any foreclosure crisis plan to work two things must happen. First, we must delve into all of the reasons why Americans are both losing and having trouble holding on to homes. Second, we must recognize or educate others to recognize that foreclosure is an “everyone problem,” and not just the problem of the family down the street who is losing their house. It requires helping others to understand that “personal responsibility” is only part of the equation. Part of this realization comes from studying the effects of mass foreclosures:
• Property values decline for those who stay in their homes because the empty houses are not getting maintained. Overgrown weeds and lawns make an entire neighborhood look unsightly. In addition such houses are targets for vandals and, in the case where appliances, copper wire, or other valuables have been left in the home, thieves.
• The neighborhood itself becomes a larger target for crime if one follows the Wilson and Kelling’s “Broken Windows” criminological theory. This theory points out that neighborhood disorder leads to an increase in crime, and so the little things need to be addressed before they become big things. New York City has been enjoying a reduction of crime by implementing this strategy, as has Albuquerque, New Mexico.
• The mortgage crisis has led to an increase in fraud nationwide. The FBI estimates that $4-6 billion have been lost to fraud each year.
• Decrease in municipal revenues as a result of lost property taxes, leading to the breakdown of many civil services.
There are five angles to the foreclosure problem that must be addressed in any effective solution. These are:
• The Problem of Unemployment
• The Problem of Paperwork
• The Problem of Fai...
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...osed-on homeowners will have places to go and regroup. Many rental companies and investors will find the tax incentives more lucrative than an extra $200-$300 per month in rent.
Solving the crisis is about providing more options to cover a wider variety of situations. This plan is also meant to be bipartisan, providing a good mix of the kinds of tax incentives as well as government aid and spending. The plan is meant to be both beneficial to business and beneficial to the common American man. We can’t considering only the needs of one concern over the other. Business and people are interdependent. This economy teaches us that business cannot survive at the expense of the common man but neither can the common man survive at the sole expense of business and the government. Providing options that meet in the middle seems to be the only way to proceed.
Sampson, R. J., Raudenbush, S., & Earls, F. (1997). Neighborhoods and Violent Crime: A Multilevel Study of Collective Efficacy.
...g, Critical, Peacemaking, Life Course and Strain theories could also be used to explain crime in these neighborhoods. According to Emile Durkheim, mores are different depending on the type of community. On a spectrum, from organic or the lower socio-economic neighborhood to mechanical or the well-structured community in this case Chestnut Hill. In a mechanical society, there is greater cohesion, sharing common values or goals. As could be expected, crime is predicted to be higher in more organic the community is.
Leading up to the crisis of the housing market, borrowers got mortgages without understanding the terms. Banks were giving out loans to people the banks weren't sure could pay the money back. The closer to the crisis, the higher the frequency of illegitimate loans and mortgages. Because there were so many mortgages on houses that could not be paid back, millions of mortgages were foreclosed on, and the houses we...
A majority of mortgage defaults that Americans used were on subprime mortgage loans, which were high-interest-rate loans lent to people with high risk credit rates (Brue). Despite knowing the risks, the Federal government encouraged major banks to lend out these loans to buyers, in hopes, of broadening ho...
One reason why people become homeless could be due to the decline of housing units affordable to extremely low income households (National Resource Center on Homelessness and Mental Illness).
Hot spot policing is based on the idea that some criminal activities occur in particular areas of a city. According to researchers crime is not spread around the city instead is concentrated in small places where half of the criminal activities occur (Braga chapter 12). Also, many studies has demonstrated that hot spots do show significant positive results suggesting that when police officers put their attention on small high crime geographic areas they can reduce criminal activities ( Braga, papachristo & hureau I press). According to researchers 50% of calls that 911 center received are usually concentrated in less than 5% of places in a city (Sherman, Gartin, & Buerger, 1989; Weisburd, Bushway, Lum, &Yang, 2004). That is the action of crime is often at the street and not neighborhood level. Thus police can target sizable proportion of citywide crime by focusing in on small number of high crime places (see Weisburd & Telep, 2010). In a meta-analysis of experimental studies, authors found significant benefits of the hot spots approach in treatment compared to control areas. They concluded that fairly strong evidence shows hot spots policing is an effective crime prevention strategy (Braga (007) .Importantly, there was little evidence to suggest that spatial displacement was a major concern in hot spots interventions. Crime did not simply shift from hot spots to nearby areas (see also Weisburd et al., 2006).
Then all of a sudden, instead of going up and up and up, the crime rate began to fall. And fall and fall and fall some more. The crime drop was startling in several respects. It was ubiquitous, with every category of crime in every part of the country. It was persistent, with incremental decreases year after year. And it was entirely unanticipated, especially because the public had been anticipating the opposite...
In essence, the problem leading to the foreclosure crisis is the recent decrease in people’s ability to make their loan payments due to job loss and lower wages brought on by the economy’s weak state. Rather than throw billions of dollars at big banks in the hope that they find ways to help the homeowners’ loans, the government should attack the problem through the individual. Simply, the government aid being spent in the hopes of stimulating the economy should be funneled toward reducing the balance of home loans to make the monthly payments affordable for the owner. By funneling the government aid directly to the American home owner in need, the economy would greatly benefit as homeowners regain their footing with their budget because the economy and foreclosure are directly related. When one hurts, so does the other; when one prospers, the other does as we...
In 1982, the political scientist James Q. Wilson and the criminologist George Kelling psychologist, both Americans, published in The Atlantic Monthly in a study that for the first time, established a causal link between disorder and crime. In that study, called The Police and Neighborhood Safety, the authors used the image of broken windows to explain how the disorder and criminality could slowly seep into a community, causing its decline and the consequent drop in quality of life. Wilson and Kelling argued that if a window in a factory or an office was broken and was not repaired immediately, people who pass through there would conclude that no one cared about that locality. In other words, the people would believe that there is no responsible authority for the maintenance of order in that place. a move to mass incarceration or a nationwide clemency policy, a large-scale shift to more targeted policing patterns, etc. ), shifts in the distribution or composition of the population (e.g. immigration trends), disruption of wide-spread illicit drug distribution paths, and events that significantly modify a nation’s perception of its government’s legitimacy”.
Two major sociological theories explain youth crime at the macro level. The first is Social Disorganization theory, created in 1969 by Clifford Shaw and Henry McKay. The theory resulted from a study of juvenile delinquency in Chicago using information from 1900 to 1940, which attempts to answer the question of how aspects of the structure of a community contribute to social control. The study found that a community that is unable to achieve common values has a high rate of delinquency. Shaw and McKay looked at the physical appearance of the neighborhoods, the average income of the population, the ethnicity of the neighborhood, the percent of renters versus owners, and how fast the population of the area changed. These factors all contribute to neighborhood delinquency.
... of their income and background which landlords find preferable to the poorer people. The quality of the rental properties tend to diminish over time as landlords are not able to get the full value out of their homes due to rent ceilings. Due to lack of incentive, landlords let their properties deteriorate and neglect maintenance as it would cost them money which they would never get back.
Why are some neighborhoods more prone to experience violent episodes than others? What is the extent and in what sociologically measurable ways do communities contribute to the causation and prevention of crime in their neighborhoods? Are neighborhood-level predictors adequate to explain differences in violent crime rates in the respective communities? These are some of the questions addressed by this statistically intense paper published in Science 1997, by Sampson, Raudenbush and Earls.
This is the problem with the burst in the housing market. The third major factor that is causing the mortgage crisis is, mortgage fraud.
Mortgage loans are a substantial form of revenue for the financial industry. Mortgage loans generate billions of dollars in the financial industry. It is no secret that companies have the ability to make a lot of money by offering a variety of mortgage loan products. The problem was not mortgage loans but that mortgage companies were using unethical behavior to get consumer mortgage loans approved. Unfortunately, the Countrywide Financial case was not an isolated case. Many top name mortgage companies have been guilty of unethical behavior. Just as the American housing market was starting to recover from its worst battering since the Great Depression, a new scandal, an epidemic of flawed or fraudulent mortgage documents, threatens to send not just the housing market but the entire economy back into a tailspin (Nation, 2010).
Therefore, the community has informal social control, or the connection between social organization and crime. Some of the helpful factors to a community can be informal surveillance, movement-governing rules, and direct intervention. They also contain unity, structure, and integration. All of these qualities are proven to improve crime rate. Socially disorganized communities lack those qualities. According to our lecture, “characteristics such as poverty, residential mobility, and racial/ethnic heterogeneity contribute to social disorganization.” A major example would be when a community has weak social ties. This can be caused from a lack of resources needed to help others, such as single-parent families or poor families. These weak social ties cause social disorganization, which then leads higher levels of crime. According to Seigel, Social disorganization theory concentrates on the circumstances in the inner city that affect crimes. These circumstances include the deterioration of the neighborhoods, the lack of social control, gangs and other groups who violate the law, and the opposing social values within these neighborhoods (Siegel,