On August the 6th , 2007 a story appear that the American Home Mortgage Company, Credit group ranked tenth in importance in the United States, is declared bankrupt. Many of the investors in this company had retreated their money, and it was forced to lay off 90% of employees.
People without access to a mortgage loan from traditional banks (a prime loan) due to credit problems or insufficient income can borrow from individuals or from mortgage curriers at an interest rate generally higher (which called subprime loan). In the U.S., almost 20% of mortgage loans are high risk. The interest rate was artificially low at the beginning, to attract potential customers (Adjustable Rate Mortgages). Financial institutions have found here a large sales market, just as customers are found in the inability to pay the bill when the real mortgage rates come into force.
In Canada, the market for such high-risk loans is much lower, mainly because of “safety net” of the banks have called credit insurance companies – which on one hand, ensure recovery of funds banks in case of default of the client, and on the other require a series of stringent criteria to grant the loan. Thus, in Canada, this kind of type loans are under 5% of total mortgage loans. When it comes to adjustable rate mortgages (initially, the rate is less, being readjusted at regular intervals), in Canada, customers are qualified and considering the variation of payments, which was not practiced in the U.S.. Mortgage lending policies in Canada are so much more cautious than in U.S.. Lately, many mortgage products were introduced in Canada in November 2008, which were produced in USA for a long time along. Real estate crisis has serious consequences for the American economy, which many analysts were expected to enter recession last year despite significant reductions in benchmark interest rate by the U.S. central bank (Fed).
All this bad news does not only affect U.S. but the world economy, which will be a sharp 
slowdown of growth rate. The main problem is the millions of American families who lose their homes after they have taken on mortgages whose interest rates have skyrocketed. The wave of mortgage prescriptions lead to worsening the situation of the property market and destroying entire neighborhoods, provided that the number of unsold homes on the stock market a full year totals. While politicians discuss how that might come to help those who are on the verge of losing housing, so far they have been very few concrete measures in this regard. All over America, last year there were 243,353 prescriptions mortgage, according to data issued by Real Trac. The latest victims of the effects of the increasing number of prescriptions the mortgage industry are the people who came to live in the street. The main factors that led to the slow decrease of U.S. real estate market prices are represented by lower mortgage, the subsidy from the state who buys a house first, but by reducing the number of forced execution.
But in present overseas real estate crisis shows more and more signs of improvement. Sales of new and old homes increased in the last four months, thus indicating the end of the worst real estate crisis. The data show that sales increased 2.9% to a 4.68 million annual rate, despite the increasing number of houses by 8.8% to 3.97 million, the highest value since November last year. The results indicate a stabilizing housing market and a confirmation of the forecast of the end of U.S. real estate recession.
