'Psychological Effects on Subprime Mortgage Crisis Essay\r'

'The day of owning a menage was a wonderful experience that Janet Wilson discoered later on closing on her first billet. She’s a single mother with two sons and when her loanword ships officer explained that her mortgage loan would be approve and she mat her dream of folkownership will be reality. The closing cost were at a minimum due to the loan officer explained it would be an easy closing with emergeing time out of pocket costs. Janet worked for a healthcare constitution for several years and was able to save equal money to buy needed furniture for her home.\r\nJanet enjoyed her in the buff home and fin anyy felt the independence and work in her life. At 45 years old, she waited a long time witnessing others in her family and friends reaching that refinement of homeownership. Janet desperately wanted to reach that goal as well as experience the feeling of obtaining the American dream. In tercet years of homeownership she was able to turn out her mortgage wit h no problem and was able to start to re-decorate her home. Her boys loved the neighborhood and had developed close friends their age.\r\nMs. Wilson forgot entirely her about her closing until one day she authorized in the mail a letter from her mortgage company that her interest rate is being increased. Janet motto her new adjusted mortgage earnings and she close fainted with disbelief. She was extremely concern of why she wasn’t certified of this possibility from her loan officer at the sign closing. Janet called the mortgage company and they showed no compassion that make the or circularize even more disagreeable. Janet did not complete what to do and the fear of losing her dream home and not having a roof over her son’s head made the situation completely worse.\r\n later a couple of months passed with the increased mortgage payment in effect, Janet was unable to make the mortgage payment so then a barrage of earn was received about a pending be after fo reclosure. Janet could not work, sleep, or eat due to the frightful stress about the horrible thought of having no place to live and becoming homeless. The thought of losing her home and turning her life upside down with the machine-driven backlash on her credit score brought psychological effects to her mentality.\r\nShe knew it would be harder to get another entrance hall to live with bad credit score and with her moderate amount of income. According to Steve Berger’s article; â€Å"Legislators presiding over the subprime crisis hearings should look in the mirror and pose a few hard questions before assigning all blame to â€Å" predaceous” lenders and mortgage brokers (Berger, 2007). Ms. Wilson experience was the fundamental principle of many other in the mortgage meltdown. With confine regulations in place when Ms. Wilson took out the mortgage loan, the predatory lenders gain an opportunity to make money on the backs of someone else dream.\r\nThere a great d eal of pundits stating that many are to blame and that nearly three out of all(prenominal) four subprime mortgages originated by brokers were either fraudulent or misleading tactics apply to trick borrowers and lenders (Bitner, 2008). In the meantime, Janet Wilson is facing foreclosure and in a difficult position to choosing what to do in her stressful crisis. She is torn between trying to save her home with a tight budget or to locomote away due to the limited availability †to keep off paying the increased mortgage payment.\r\nJanet is listening to every news update on the government examine to assist homeowners in the mortgage crisis as the investors were assisted. In addition, to the rise of foreclosures across the country similar to the situations the like Janet Wilson, the financial industry must and will reassign in order to puzzle the United States scrimping back on track (Lee, 2003). In the meantime, the homeowner is stuck not knowing what tomorrow will bring or if their home will be interpreted away due to misleading practices.\r\n'