National Foreclosure Crisis Destroying American Dream
by Gerri L. Elder
Many people in the United States have fond memories of growing up in neighborhoods that seldom changed. We had the same neighbors, the same friends and went to the same schools until we grew up and went out to live the "American Dream" on our own. There was strength, pride and security in our communities, and it was a comfortable life for many.
Now, as adults, many people are finding out that the sense of community that we once enjoyed is all but gone. Our children will not have the same memories of living in the same place and growing up with the same set of kids. The mortgage crisis has made us all uncomfortable on so many levels.
Has the nationwide foreclosure crisis wiped out the American dream?
Sadly, it does seem to be all but gone. But how did this happen and when did neighborhoods across the country become rows of vacant properties?
Around 2004, there was a big boom in the housing market that set us up for this fall. Lenders just wouldn't turn anyone away. The American dream seemed available to anyone who wanted to sign up and take on a mortgage. It seemed to home buyers at the time that they just couldn't lose. The prices on homes were continuing to rise, so why not grab on to something that seemed like such a sure thing?
Predatory and subprime lenders didn't miss a beat. Loans were made, even to people who couldn't afford them, because the homes were increasing in value so fast there seemed to be no risk. No one really anticipated what was to come.
Many homeowners signed up for adjustable rate mortgages at low teaser rates. At the time it didn't seem risky at all because the home values were continuing to rise, and since it was so easy to get mortgage loans, they just figured they would refinance when their payments went up.
Then the market plunged. Interest rates went up. Adjustable rate mortgages started to reset. A huge mess was created and millions of Americans faced and are facing foreclosure on their homes. They are packing up their broken hearts and belongings and leaving their homes and dreams behind.
Aside from the huge and growing problems of Americans finding themselves homeless, with no money left after struggling to pay their mortgage payments and trying desperately to hang onto their homes, there are other far reaching issues.
The people who are able to keep their homes are now living amongst all of the abandoned properties. Lawns aren't being cut, the homes aren't maintained, the pools have long since turned green and become breeding grounds for disease carrying mosquitoes. Many properties have become havens for thieves, drug dealers, vandals and prostitutes. Property values continue to plunge and no one knows what to do about it.
If it were only one area of the United States in crisis, perhaps a solution would be easier to come by, but the problem is a huge one. It is not simply one area of the country that is being affected by the foreclosure crisis, it is everywhere.
Our once happy American dream has now become a nightmare.