Crisis in the Housing Market

The unstable housing market is one of the main reasons the economy is having troubles getting back to steady ground. Foreclosures are the main concern and they have "soared to record highs." Ben Bernanke, the Federal Reserve Chairman recently said that bank regulators are looking into whether or not corners have been cut in regards to foreclosing homes. They're taking the issue of the possibility of bad foreclosures seriously and are looking into whether or not in may be due to problems in the system. They're also looking into the effects this may have on financial institutions and the real-estate market. Also, the cause of such a large foreclosing crisis is primarily due to people taking out loans on their homes they didn't understand and now owe more money than their house is worth.
http://www.msnbc.msn.com/id/39828590/ns/business-real_estate/

This issue seems like it's one that'll be very difficult to resolve. Like the article said, the housing market it the main reason we're struggling to get back to a steady economic ground. Foreclosures have crippled the stability of many families and if people are even deeper trouble than they thought, it's certainly not a good sign. However I'm not quite sure how these reports on the investigations of improper foreclosures will turn out and I really don't know if finding a lot of mistakes will help or hurt us. I do know that large mortgage and financial companies shouldn't have to be double-checked for suspicion of cutting corners. Cheating the system definitely won't help us get where we need to be!

Ben Bernanke (Fed Chairman)



(http://en.wikipedia.org/wiki/Foreclosure)