Asked by Amber Vasquez on May 20, 2024
Verified
In 2007 and 2008,the government faced a housing crisis caused by
A) sharp rises in house prices.
B) foreclosures.
C) a scarcity of affordable housing.
D) shortages in the timber industry.
Foreclosures
The legal process by which a lender takes control of a property, evicts the homeowner, and sells the home after the homeowner fails to make full principal and interest payments on a loan.
Affordable Housing
Housing that is reasonably priced and accessible to those with median or below-median income levels.
Timber Industry
The Timber Industry involves the operations of harvesting, processing, and selling wood and wood products, which are used for building, manufacturing, and various other purposes.
- Acquire knowledge about the precipitating factors and results of the 2007-2008 housing crisis.
Verified Answer
DW
Dijion WallsMay 26, 2024
Final Answer :
B
Explanation :
The housing crisis of 2007 and 2008 was largely caused by a rise in foreclosures, as many homeowners were unable to keep up with their mortgage payments due to predatory lending practices and the subprime mortgage market. This led to a glut of foreclosed properties on the market, which in turn brought down property values and caused further financial distress for both homeowners and lenders. While there were certainly issues with affordable housing at this time, this was not the primary cause of the housing crisis. There were also no shortages in the timber industry that contributed to the crisis.
Learning Objectives
- Acquire knowledge about the precipitating factors and results of the 2007-2008 housing crisis.