Foreclosure: A loss for all

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Foreclosure: A loss for all

Abstract: Although foreclosure has always dwelled on those in the market it has in recent years slowly crumbled the economic infrastructure of the United States. While many government solutions have been attempted, including Home Affordable Modification Program (HAMP), they have in many respects failed because of the lack of transparency. Including transparency many banks and lenders have been part of the foreclosures in America because of their inability to identify who is a prime and subprime lender. If there is no distinction then I fear wrongly calculated loans may be given to the average American. Fixed rates and strict banking regulation has left even the most credit worthy lender out of the dust leaving housing sales at an all time low. Lastly it is important to look at how banks and lenders are ethically behaving for it seems the ethical realms of business have turned invisible when it comes to dealing with the housing market. Despite these problems, however, I am optimistic that with the right solutions and leadership the housing market can get back on its feet.

There is no such thing as free Lunch:

As the famous American economist Milton Friedman once said, “There is no such thing as free lunch”. Despite this pessimistic outlook by Friedman there has always been evidence of generosity. As a child, for example, when one forgot their lunch money there was always someone around who would pitch in to help- a friend, the lunch staff. No, however, suppose that for one particular child forgetting their lunch money was a daily occurrence, more likely than not people would stop lending him money. Somehow, nonetheless, the child would not go hungry, more likely than not someone would start to...

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.... House. Committee on Financial Services. Subcommittee on Housing and Community Opportunity. Committee on Financial Services. Foreclosure prevention and intervention : the importance of loss mitigation strategies in keeping families in their homes : hearing before the Subcommittee on Housing and Community Opportunity of the Committee on Financial Services, U.S. House of Representatives, One Hundred Tenth Congress, first session, November 30, 2007. By U.S. G.P.O. Washington D.C: U.S. G.P.O, 2007. Print.

United States. Government Accountability Office. Risk-based capital [electronic resource] : bank regulators need to improve transparency and overcome impediments to finalizing the proposed Basel II framework : report to congressional committees. By Accountability Office. Washington D.C, 2007. Print.

Zandi, Mark M. Financial Shock. New Jersey: FT, 2009. Print.

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