The problems surrounding the subprime mortgage markets have pushed the housing market into its worst slump in 16 years – weakening the American economy and making American families less secure economically. According to a Congressional Joint Economic Committee Report, as many as 2.8 million Americans could lose their homes in the next five years due to the subprime mortgage crisis. Nationally, the expected economic costs of projected foreclosures total nearly $104 billion.

Foreclosures can devastate entire neighborhoods and cities, not just the borrowers who lose their homes. Some Studies have shown that foreclosures increase violent crime in neighborhoods. Properties that have been foreclosed upon have been shown to decrease the value of other homes in the neighborhood. Foreclosures reduce city tax revenue, making it harder to provide good schools, police protection, code enforcement and other services. We must work to assist homeowners facing foreclosure for the good of our families, communities and nation.

This entry was posted on Thursday, March 27th, 2008 at 11:34 am and is filed under Politics, Economy/Budget .