How to Solve the Current Foreclosure Crisis; Encourage the Free Market

Our current foreclosure crisis is caused by several different market conditions. The main reason is that at low interest rates, there are no documents to be lent to most people breathing. Wall Street is vibrant against these high risk, low file loans. At the same time, investors (Wall Street) want to make more use of these loans, but the appraisal of real estate is rising rapidly. In addition, major insurance companies insure investor funds for these high risk loans.

The problem of solving the foreclosure crisis first raised the question "Is there really a foreclosure crisis?" The crisis is indeed in danger, but it is not caused by foreclosure of mortgage loans. . Foreclosure is a mechanism to deal with obligations people can not borrow. The potential impact of housing foreclosure (slowing down by the "affordable family plan" of the Obama administration) is actually a market, not a debt but a crisis. The history of the world economy has experienced sovereign debt crises such as Latin America in the 1980s, Russia in the latter half of the 1990s, and Argentina in the early '00s. The debt crisis in Europe is the most important thing in the business world since 2010.

Six years have passed since the foreclosure crisis occurred, and technical termination and recovery period of the economic recession began in five years. The nationwide foreclosure crisis has been relaxed. However, in Maryland, foreclosure recently recorded the highest value, Maryland ranked 16th in foreclosure, but by 2013 the state rose to 3rd place nationwide. The number of applications has surprisingly increased 250% between 2014 and 2014, and the foreclosure rate of Prince George County has increased by 50% this year.

Destructive economic events I) Crisis of foreclosure The crisis of foreclosure of housing loans is due to the severe decline in city income, the increase in crime rates and homelessness, and the increase in vacancies based on surveys using online questionnaires I brought it. During the bubble of the subprime mortgage, loot loans and excessive family overgrowth occurred. Peterson explained the foreclosure crisis in Wallison. - Wallison thought that the main reason for foreclosure crisis was due to policy implications.