Housing+Crisis

The struggling economy can be partially attributed to the bust in terms of housing. People are unable to not only buy new homes, but also can no longer pay their mortgage. In 2006 the market reached a peak where people were buying and selling homes for a large price. Since then the price of homes has gone down significantly. As the prices decrease the percentage of homeless people grows vastly. President Obama is doing his best to slow down these shocking growths. He has implemented a mortgage lending program along with a buyer’s tax credit program. These are both due to expire in early 2010 which leaves a large whole for people who are looking for homes. 2.4 million more homes are expected to be foreclosed on in 2010. This would bring down the percentage 40 percent from where it was in 2006. The goal now for congress is to decrease the mortgages of people. In some cases people owe a significant amount that can surpass how much their home is actually worth. By making the payments of people lower it would decrease the amount of foreclosures. How ever this is not easy considering the people who have lent the money in loans want to be paid according. This is going to cost company money or we could continue down the path that is leaving people homeless. With people struggling to pay their mortgage it spreads to the rest of the economy. People become unwilling to spend money which in true hurts our overall economy as country. A country that does not have a strong economy leaves themselves open to destruction from the inside out. [|Housing video]