homelessLF

The U.S. is going through a very bad recession right now. Because of the recession many people's houses has foreclosed and lots of people are now homeless. Foreclosures shot up by 81 percent in 2008 and have increased by 225 percent since 2006. Over a year ago US President Barack Obama implemented the Home Affordable Modification Program (HAMP) which was designed to help unemployed homeowners avoid foreclosures by allowing bank to lower interest rates and mortgages. Reports show that the program has not quite succeeded. Banks are being more particular in who they lend money too, thus fewer people are able to get finances to buy homes; causing prices to fall. Prices are off by about 25 percent to 30 percent and may go down by another five percent in the next 18 months.