Business Law

Legal IssuesThe current mortgage crisis remains on of the to the highest degree stunning economic disasters in recent memory . This is because very(prenominal) a couple of(prenominal) individuals predicted it would ever occur and part of the reason for this is that few were paying attention to the common predatory lending practices that numerous a(prenominal) lenders were inhibiting . In her term for the Associated Press entitled Rural Communities add By Foreclosures Evelyn Nieves chronicles a number of legal problems and issues posed by this crisisThe unique legal issues put forth in this peculiar(prenominal) article centers on the town of Merced , CA were a mental strain on the traditional lending contract facilitated the foreclosures . That is to say because of the personality of the types of loans presented (personal property loans as opposed to traditional mortgages ) the properties argon not so much foreclosed upon as much as they atomic number 18 repossessed . While to some this may seem like niminy-piminy words as the difference between repossession and foreclosure is semantic . later all , the end result is that the home is lost , fabricate ? True , but the main difference is that there are a number of legal protections provided to an individual in foreclosure as opposed to repossession . Repossession of the properties makes the process of evicting and re-acquiring significantly easier to processAdditionally , this raises a number of questions ab out(predicate) predatory lending . That is to say , many look at the significant number of people losing their homes and drawing a coefficient of correlation between the losing of the home and the unsavory lending practices of the lender . federal law however , does not regulate these types of transactions creating the point of a number of these negative situations to happen under the radarFacts of the IssueThe facts presented in the article cover a number of areas .

Firstly the article points out that bucolic area are even to a greater extent susceptible to predatory lending due to the neglect of trouble in the area Additionally , many of the homes in rustic areas are of the prefabricated variety and that provides the loophole for the more predatory lending practices that many lending institutions are known to exhibitAdditionally , due to the fact that rural areas possess little access to banks and other lending institutions the borrowers often fall prey to high interest rat providers who draw advantage of the situation . Again exacerbating this situation is the lack of federal oversight on these smaller lending organizationsThe problems resulting from these spoiled lending agreements have been nothing short of staggering . harmonise to the article , homes and property are selling at less than half of what they were only a few years precedent . While the article does not come right out and say it , it would seem that much of the blame is placed on the lending institution for flooding the residents with extremely bad loans with sticky terms and conditions . As such , an economic crisis was very serious to avoid However , of what the lenders had done violated the law although questions may be...If you want to get a full essay, order it on our website: Orderessay

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