Housing Crisis Research Paper

1483 Words 6 Pages
The housing crisis affects millions of Americans because of many peoples income and not being able to afford it . Many government programs are established to help many people . In different places housing prices are different . The better the environment the higher the prices . The not as good quality the environment the lower the cost . There have been many programs that have been established to help with poverty . In inner cities the price of housing is much lower because of the environment . The prices are lower because the houses are not as good . The environment is not as safe . Usually in low price housing the houses are beat up and run down . Department of urban housing and development gave 1.1 million – unit public housing …show more content…
Home ownership is very low . Prices of inflation has declined since 2010 . Lenders have changed since 2008 they offered undocumented immigrants and high risk borrowers loans . That is one of the reason that lead to the housing crisis . The crisis began in 2007 the economy entered a mortgage crisis . It was caused because a lot of homeowners could not pay for where they were staying . That triggered other financial problems in the U.S . Too many people were borrowing money and not enough people were paying it back . Which changed the way houses were priced the price of housing went up because of it . Many people want to own homes instead of renting them but not everyone can pay for their mortgages . Which was one of the main causes of the crisis . In the early 2000’s mortgage interest rates were low which meant you could you could borrow money and have a low monthly payment on your home …show more content…
They were basically just handing out money so people could buy these expensive houses with high mortgages and then ending up being foreclosed on . Then the banks wouldn’t get their money back which put them in a crisis . Mortgage applications were not looked over carefully and anyone really could get accepted to have their own home . When all of this was going on banks kept mortgages on books and you would have to pay them and if you did not pay them they lost money . Now they sell yours loans and to investors and divide them . When homeowners could not pay their mortgages than the price of housing went up basically to back pay for people not paying their mortgages . Interest rates rose because the housing cost was increasing because of people not paying their mortgages . Many people did not know whether to just let the banks foreclose their homes or renegotiate their loans . That was their only two choices or they could just walk away from their home . Many tried to watch how they were spending but by then it was already too late . So many ended up just losing their homes . Banks didn’t get their money back for the most part because people couldn’t pay them back . If they didn’t have bad credit before they probably did now after either losing their home or getting foreclosed on . Nowadays getting a home is way harder because they don’t want to end up in

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