Buy custom The World Financial Turmoil 2008
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| Topic: |
Business
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| Number of pages / Number of words: |
14 / 3831 |
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The mortgage broker who or the bank that offering them sub-prime mortgage are neglected to properly explain that there will be increase or the rate will be doubled the low rates that has been offered during the introductory period, usually after two years and it is dependent on the level of Fed interest rate which is also rise substantially (BBC News, 2007)...
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The low introductory rate has made the borrower especially those who really desperate to buy a house eagerly to take sub-prime mortgage which in turn resulted in sub-prime mortgage foreclosure. It is a situation in which the lender will repossess and sell the property for the borrower’s default in mortgage payment...
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