We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Foreclosure Crises and the Effect on Affordable Housing - Research Paper Example

Comments (0) Cite this document
Summary
Foreclosure Crises and the Effect on Affordable Housing Introduction The housing market collapse followed by foreclosure crisis had a significant impact on the availability of affordable housing in the USA. About 12 million homeowner households throughout USA pay more than half of their annual incomes for housing that deprives them off meeting their other essential needs such as healthcare, proper nutrition, education for their children…
Download full paper
GRAB THE BEST PAPER
Foreclosure Crises and the Effect on Affordable Housing
Read TextPreview

Extract of sample
Foreclosure Crises and the Effect on Affordable Housing

Download file to see previous pages... The affordable housing crisis is due to gap between housing costs at one hand and household income at the other. Minimum wage does not provide enough income to a household so as to rent a two-bedroom home at the fair market rate. The gap is widening even more today. The paper explores the impact of mortgage crisis and subsequent foreclosures on the availability of affordable housing. Housing Affordability is a National Issue Bravve et al. (2012) argue that almost all states in US are facing affordable housing crisis. In 2012, the average extremely low-income (ELI) household cannot afford to spend more than $505 on rent, as on average they will earn nearly $20,210. They further argue that nationally one-bedroom fair market rent (FMR) is $797 going up at $949 for two-bedroom dwelling – much beyond the capacity of ELI households to pay. The gap has grown in the wake of the worst recession that US is facing currently. The crisis has caused most profound impact in certain areas where unemployment rate is high. In the aftermath of subprime crisis, ELI renter faces tough time for an affordable housing in a rental market. The supply of low-cost rental units is fast shrinking as more housing units are converted to serve higher income households. ...
About 8 million individuals fall in this category that cannot afford to pay rent above $209 because they receive monthly federal monthly payment of $698 in the current year. Ironically, 57% of all recipients have only a single source of income. Based on this criterion, not a single county in the US can supply affordable housing. Moreover, the number of Americans subsisting on low-income are on the rise and the need for affordable housing will continue to grow. Housing Policy and its Effect on Affordable Housing Wallison (2010) puts blame squarely on the government housing policy that led to the financial crisis and subsequent collapse of the housing market that finally resulted into the depleted supply of affordable housing throughout the US. The housing policies created subprime mortgages and finally when the market started collapsing in 2007, the defaults on loans started taking place in masses resulting into thousands of foreclosures within a short period of time. A subprime loan is defined as a credit to those who have less than 660 FICO credit score. Even Alt-A loan is not considered prime loan due to some deficiency associated with it. Usually, Alt-A loans have low down payments, or insufficient documentation with regard to income and employment details. In the current situation even Alt-A loans have the same default percentages as subprime loans. In the early 1990s, the government pressed the government-sponsored enterprises (GSEs) Freddie Mac and Fannie Mae to lower the mortgage requirements so that more individuals could purchase homes. Under an affordable housing “mission” drive, Freddie Mac and Fannie Mae started purchasing loans from the original lenders ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Foreclosure Crises and the Effect on Affordable Housing Research Paper”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1448572-foreclosure-crises-and-the-effect-on-affordable
(Foreclosure Crises and the Effect on Affordable Housing Research Paper)
https://studentshare.org/macro-microeconomics/1448572-foreclosure-crises-and-the-effect-on-affordable.
“Foreclosure Crises and the Effect on Affordable Housing Research Paper”, n.d. https://studentshare.org/macro-microeconomics/1448572-foreclosure-crises-and-the-effect-on-affordable.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Budget /financial crises
government and the people that a deregulated financial system can lead to financial crisis. The economic and political viability of the country was under threat in the case of 1930s. The decade in the 1930 to 1940s witnessed the most stringent financial system than ever before.
12 Pages(3000 words)Research Paper
Affordable healthcare:tobacco smoking
Upon his arrival in 1610, CDC (2007) affirms that John Rolfe tried to farm smokable tobacco but from small-leafed Nicotiana Rustica which was grown by the Virginia Indians and by the time 1612 came, farms of Nicotiana Tabacum were widespread as Rolfe had obtained and planted the large-leafed Spanish Tobacco seed.
9 Pages(2250 words)Research Paper
Multi-family Affordable Housing Developments
Affordable housing developments benefit neighborhoods, especially when developers consider the compatibility between the host neighborhood and the housing project, the density of affordable housing, and the way in which the affordable housing is designed and managed.
7 Pages(1750 words)Research Paper
The Benefit to Affordable Housing in Communities - Affordable Housing Is Not a Detriment To Neighborhoods
The first step is to break down the myths that affordable housing will increase crime rates, decrease property values, and increasing tax burdens, as well as the stereotypical perceptions about project residents. The key to succeeding will be the willingness to change old perceptions, add new solutions to the mix, and update the conventional wisdoms.
8 Pages(2000 words)Research Paper
Coomb's situation crises communication
These included banks among which Citibank belongs. Citibank is one of the leading banks in the United States of America. With a customer base of more than five million, the bank is definitely reputable. Before the crisis, Citibank’s performance was on the increase, which implied that the bank had succeeded in developing a trusted relationship with her clients.
2 Pages(500 words)Research Paper
Cause, effect and lessons learnt from the asian financial crises
In reality, the Asian financial crisis became the severest form to affect developing countries after the huge 1982 debt crisis. In this way, this crisis was least expected and most financial observers did not think the Asian economy would collapse. The crisis shed light on possible weaknesses within the international capital market in the event of immediate reversals of a growing market.
9 Pages(2250 words)Research Paper
Research paper about Gasoline crises
Oil is also required for the production of electric power which is the most important component of every industry. The available oil resources are exhausting day by day and the exploration for new oil sources has not yielded much successes. Global economy is directly
7 Pages(1750 words)Research Paper
Affordable Care Act immigrants
d by the very low infant mortality rates and the many programs that address the needs of the elderly, the disabled and the low income earners (Gorin 3). The boost in health, lately, has been due to the Affordable Care Act, commonly known as Obamacare. The ACA has been imperative
10 Pages(2500 words)Research Paper
Housing Policy Seoul, Korea
From a population of just 900,000 people after the Second World War, the city in 1998 reached a population of 10 million before slightly falling to its present population of 9.82 million. Moreover, the
10 Pages(2500 words)Research Paper
Affordable Housing in London
 Unlike the rest of the country, London has a different housing market. These include property demands, tenures and households mix, affordability or buying affordability as well as the levels of acute need for affordable housing.  These differences distinguish London housing from the rest of England and contribute to the affordable housing challenges that London faces. 
7 Pages(1750 words)Essay
Let us find you another Research Paper on topic Foreclosure Crises and the Effect on Affordable Housing for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us