The Recent Recession and How It Has Affected Our Economy
The Recent Recession and How It Has Affected Our Economy
We all realize that we are currently in a recession and times are tough. Almost everyone I know has been affected by this recession in some way, including my family. Due to this assignment, I have found myself asking this question: how has the recession affected my family and the community? Everyone that I spoke with had strong and emotional answers to this question. This past year has been very hard for my family. Both my husband and I where laid off from our jobs leaving us struggling to find a way to provide food, shelter and all other necessities in life for ourselves and our two children. With not knowing how we would be able to pay for our bills, loosing our home and the possibility that our car wouldn’t be there when we woke up in the morning, left us with a sickness in our stomachs and a lot of sleepless nights. How is the recession and mortgage fraud affecting the local businesses too? If the recession were a disease, it would be an epidemic. The City of Fairfield in Ohio has had many properties affected by mortgage fraud. These properties were sold at artificially inflated price which resulted with properties in the surrounding neighborhoods to also become artificially inflated. When that occurs, property taxes also artificially increase. As unqualified homeowners began to default on their inflated mortgages, properties have been going into foreclosure and neighborhoods begin to deteriorate (1). With the homes deteriorating, surrounding properties and neighborhoods witness their home values depreciating. As this happens, legitimate homeowners find it difficult to sell their homes. Additionally, the decline in home values has had a direct impact in the City of Fairfield with the ability to provide resources for schools, public safety, and other necessary public services that are funded in large part from property tax revenue. With the loss of income for the city has resulted in cutting
We all realize that we are currently in a recession and times are tough. Almost everyone I know has been affected by this recession in some way, including my family. Due to this assignment, I have found myself asking this question: how has the recession affected my family and the community? Everyone that I spoke with had strong and emotional answers to this question. This past year has been very hard for my family. Both my husband and I where laid off from our jobs leaving us struggling to find a way to provide food, shelter and all other necessities in life for ourselves and our two children. With not knowing how we would be able to pay for our bills, loosing our home and the possibility that our car wouldn’t be there when we woke up in the morning, left us with a sickness in our stomachs and a lot of sleepless nights. How is the recession and mortgage fraud affecting the local businesses too? If the recession were a disease, it would be an epidemic. The City of Fairfield in Ohio has had many properties affected by mortgage fraud. These properties were sold at artificially inflated price which resulted with properties in the surrounding neighborhoods to also become artificially inflated. When that occurs, property taxes also artificially increase. As unqualified homeowners began to default on their inflated mortgages, properties have been going into foreclosure and neighborhoods begin to deteriorate (1). With the homes deteriorating, surrounding properties and neighborhoods witness their home values depreciating. As this happens, legitimate homeowners find it difficult to sell their homes. Additionally, the decline in home values has had a direct impact in the City of Fairfield with the ability to provide resources for schools, public safety, and other necessary public services that are funded in large part from property tax revenue. With the loss of income for the city has resulted in cutting
Cited: (3) Online Businessweek web site, U.S. Economy: existing Home Sales Fell in December (Update 1), January 25, 2010; available at: