Essay on The Decline of Auto Purchases in 2008

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In 2008, an absolute indication of a recession was the decline in auto buying, insurance companies requiring assistance, retail stores closing with massive lay-offs stemming from these markets. As a result, these individuals now unemployed were unable to pay their monthly mortgage payments which resulted in home foreclosures. A foreclosure is legal proceeding that bars or extinguishes a mortgagor’s right of redeeming a mortgaged estate (“foreclosure“, n.d.). In New Jersey, the statewide foreclosure rate is 0.03% and the unemployment rate is 9.7% resulting from the loss of 179,400 high paying jobs that were replaced by lower paying jobs (Mackenzie, 2009, p. 1). It is clearly evident that the crisis of home foreclosure throughout the…show more content…
One such charity sited for assisting families in danger of foreclosure is Catholic Charities. Another program in Somerset, New Jersey started by First Baptist Church of Lincoln Gardens is the Home Assistance Recovery Program or HARP buys the homes and permits the homeowner to remain in the home and rent until they can repurchase the home in two to three years. These are very good solutions for homeowners that need an immediate solution because of an extended length of time of missed mortgage payments. However, in the case of a homeowner that fall behind for two months the option needs to be a lot easier. My suggestion is an Emergency Homeowner Protection Fund that regulates insurance companies that issue mortgage contracts in each state. The fund would be not for profit operating for the sole purpose of helping working class and low income families with a home mortgage to remain in their homes. The criteria for assistance would be that the foreclosure was precipitated by loss of employment, a medical catastrophic event and divorce which are uncontrollable events. The fund would be responsible for litigating charges against insurance companies and real estate companies that practice unorthodox methods against unsuspecting home purchasers in cases where loans were given to a person who has no income and no job.
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