Foreclosing on the American Dream

Foreclosing on the American Dream

In American society, one of the great symbols of achievement is owning your own home. It is not only a symbol of achievement, but also the American Dream. So the fact that foreclosures are  becoming more and more common is scaring a lot of people. Foreclosures have been big news since the Great Recession hit. Foreclosures hurt communities by decreasing stability and well-being. They are most prevalent in low-income and minority populations.

This foreclosure crisis is about more than just ones inability to pay, it is a disconnect between the borrower and lender. This disconnect has been caused by the changing of the banking industry. Many local banks were also bought by large national ones. These are two of the reasons why banks and their customers have had a disconnect in the past few years. But a connection between the bank and customer is crucial when one is trying to make a large investment (on a house), and especially during a financial crisis. This foreclosure epidemic has taken its toll on the middle class.