Essay on Poverty vs. Equality and the Foreclosure Crisis

This has put a major impact amongst many individuals that are currently living in the United States. As I look and view the news about foreclosure and I sit and watch those who are suffering from it, I am deeply hurt and thankful simultaneously.

to be approved for a mortgage. Some of these home owners may have walked away from their

For many years, the American dream has been deteriorating for several reasons. Paul Krugman, author of “Confronting Inequality,” blames the “inequality of our income distribution.” He explains how and why the differences between wages of the poor and wealthy are a major conflict in today's society. Constance M. Ruzich and A. J. Grant, authors of “Predatory Lending and the Devouring of the American Dream,” argue that the downfall of the American dream has occurred because of predatory lending acts. According to the authors, predatory lending and inequality play a very significant role in the corruption of the American dream.

It is evident that the housing deficit is just a layer of the many problems we are suffering from during the hard times in our economy. Foreclosure is indeed a horrific word that is haunting homeowners across the US. Because of the situation in the current economy, millions of Americans have been plagued by foreclosing on their homes and are left to find new location for themselves and their families to live.

In the gleeful times of 2005, my parents decided, like so many others, that it was time to “upgrade.” They sold our smaller home on the other side of town, which had appreciated nicely, and bought a 3700 square foot behemoth in a town with already exorbitant property taxes. My younger brother and I were thrilled to finally have a basement, our own rooms, and even a concrete basketball court in our backyard! All eight-year-old me knew was that things were going to be a whole lot more comfortable from there, and my optimistic parents seemed to think the same.

was August, and I was seven months behind on the mortgage. The house had now gone into foreclosure, and on the twenty-eighth, it was going to be auctioned. Despite what that letter said, I still trusted God to perform a miracle. That letter did not faze me a bit. My faith was solid, and nothing or any person was going to shake it. After all, I was following the direction of the Lord.

The foreclosure crisis that devastated our economy several years ago not only impacted the middle class wealth but also the upper class wealth. The upper class families who were not prepared for this crisishad to downsize their primary homes or utilize their investments and savings to keep their properties. The middle class families were hit the hardest during this crisis with losing there homes, depleting their life savings and investments. The middle class families who were forced to foreclose on their homes due to their loss of income and financial security moved into rental apartments or moved to a family members home to regroup from this crisis. Areas that may have added to foreclosures or short sales were the lost of many jobs due to a corporation downsizing of their employees, or the over appraising of a property if the property was appraised higher than the true value or what a buyer was willing to pay for the property. Homeowners were forced to sale their property at a lower price if the homeowner was in the process of a divorce, relocating for a job or foreclosing because they had fallen behind on their mortgage payments.I have seen circumstances where certain peoplelived above their means by spending more for a home or nonessential items like luxury vehicles they couldnot actually afford to pay.

mortgage was due, and I had not paid anything since they sent the check back to me in March. I received a letter stating that I had to send them both payments, or they would not accept it. I had believed that if I was sending them a payment, everything would be okay until I was able to catch up. When I sent February’s payment in March, the mortgage company sent the check back. I explained to them that I wasn’t two months behind because I had until the 15th of March to pay them. They would not work with me, and now I had a problem of needing at least another one thousand dollars to catch up with my mortgage payments.

The insolvency seen in the Housing Market manifested in the large number of stagnant foreclosures caused a dramatic decline in housing prices, which resulted in many homeowners owing more money on their houses than they are worth. Market-level insolvency is caused by capital flight in a specific market in response to a scare during a decrease in solvency. During the scope of this recession, the initial, progressive decrease in solvency was caused by a negative Net Capital Outflow in conjunction with the cash-vacuum produced by the US Budget Deficit, and the scare was caused primarily by the failure of several significantly-sized corporations and a rapid increase in foreclosures caused by the loss of a large number of jobs.

Narrative Essay: Revision 5 During the first week of July of 2014, when I went out to grab the mail, I was approached by an older gentleman who handed me a piece of paper, and told me that our house was in foreclosure. “That is impossible. We pay our bills on time!” “I do not know anything about your problems,” he said.

Brooklyn, NY – December 30, 2009 Foreclosures continue to rise drastically across the United States due to the recession, and have effected, and continue to affect thousands of families and individuals every day. One aspect we must take into consideration is that most people are not informed of what foreclosure means, or the process, even those who are homeowners. I believe that one step to preventing foreclosure is to educate first-time homebuyers. In addition, first-time homebuyer programs should not only assist potential buyers with financially preparing them to buy a home, but to keep the home once

My parent’s have been fighting to keep their house ever since my dad lost his job over a year ago. They had been trying to pay the house off at a faster rate so had opted for a short term mortgage. Everything was going fine until the bottom fell out when the economy busted. They tried desperately to get their mortgage restructured before their savings ran out the first part of the plan, make an emergency refinance program and suspend DOC stamps and other fees so people who demonstrate need can reduce their mortgage payments before becoming delinquent. The federal government could make a program like they have for first time home buyers and give credits towards the refinancing of the loans. Diligently calling the mortgage company to try to

There are many different ways to interpret the inequality in the economy, some of which are: It could simply be a fluke that inequality rose suddenly for many years’ prior the crisis, or high inequality could by some means create economic weaknesses. The frankest explanation for the connection between inequality and the crisis is what some call the demand gap. There are many differences of this thought, but at its fundamental core is the disagreement that most Americans, suffering from unchanging earnings, couldn’t manage to pay for everything they required to just barely survive.

The current issue of home foreclosure is based off of a long series of bad loans to people who were not able pay those debts off. Based on nightly news reports over the past year, it appears that the majority of these foreclosures are on very modest homes. My solution to this problem is to invest in those homes using green technology.

The United States economy has been in trouble for the past couple of years. The foreclosure crisis is a condition that began due to the inability of homeowners to pay their mortgages. Foreclosure is a legal proceeding whereby a lender obtains a legal termination of a debtor’s right to redemption. The foreclosure rates have been increasing for a considerable period and certain steps have been put into place to solve the problem. While the government, financial institutions and the general public are highly aware of the crisis, the steps taken to combat the problem are still not sufficient as the foreclosure rates are still increasing.