Ask Question, Ask an Expert


Ask Basic Finance Expert

Neighborhood Housing Assignment:

Mercy Portfolio Services has received $100 million in TARP funds to help Chicago area homeowners who are facing foreclosure. They will buy up distressed mortgage debt and offer to forgive some of the debt so the homeowner will no longer be underwater. They will work with the homeowner to help them become current.  If successful, they will help the homeowner refinance. Alternatively, if this fails they will foreclose and sell the property. (See Crain’s Chicago Business, Sept. 26, 2011, p. 3.)
An agent of Mercy has asked for your help in evaluating the strengths and weaknesses in Chicago’s 77 neighborhoods to determine where it is best to place their funds. They would like to target neighborhoods where their investment is more likely to result in a successful rescue of homeowners from foreclosure.  Mercy needs a report that provides basic economic information on the neighborhood (e.g., available information on neighborhood history, employment/unemployment, income, commercial development, etc.), recent foreclosure and lending activity, and the movement of home prices. The agent asks that you provide information on one neighborhood. You can choose your own neighborhood or one that you find interesting or one where you can find the best data.
You can view some basic lending and foreclosure data by neighborhood on the Woodstock Institute website in their Fact book ( You can use this data to discuss how hard the neighborhood has been hit by foreclosure, and who was and still is lending to this neighborhood. A comparison of data on this neighborhood to data for Chicago as a whole will provide some perspective. 
You can get home price information from the October 2010 and October 2011 issues of Chicago Magazine. The cover stories provides a good overview about current housing markets in Chicago. The 2010 issue is available on line at The 2011 issue is available at and in the Chicago Public Library. Sales and price data will provide some insight into change in value and the whether there is relatively weak or strong sales activity.  It will be useful to compare data for your neighborhood to Chicago area averages or to data for a neighborhood that you think is comparable. 

Accompanying your written report with graphic information on prices, sales, foreclosure and lending will increase its information value for Mercy.
You can bring in any anecdotal information you have about the neighborhood such as schools, employment, parks, transportation, etc. Google your neighborhood name and see what additional information and opinion is available. 
Finally, Mercy would appreciate your bottom line opinion on whether their program is likely to help homeowners in this neighborhood. There is no right or wrong answer. You will be graded on your presentation of the information you choose to include and on your overall assessment of whether the neighborhood will be a good fit for the Mercy program.
Your paper should be 3-4 pages double spaced, not including any attached charts and/or graphs.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91369

Have any Question? 

Related Questions in Basic Finance

Last year hamdi corp had sales of 500000 operating costs of

Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets of $350,000. The debt-to-total-assets ratio was 17%, the interest rate on the debt was 7.5%, and the firm's tax rate was 35%. ...

Again consider the monthly 1-year and 10-year treasury

Again consider the monthly 1-year and 10-year Treasury constant maturity rates from April 1953 to October 2000. Consider the log series of the data and build a VARMA model for the series. Discuss the implications of the ...

Use a graph to show what happens to the interest rate if

Use a graph to show what happens to the interest rate if the demand for money is increasing while the supply of money is decreasing.

Below are three line items from a corporations income

Below are three line items from a corporation's Income Statement. Select the correct line to use and compute the federal tax. Sales: $335,000 Cost of Goods Sold: $225,000 Net Profit Before Tax: $ 92,000

Davenport corporations last dividend was 700 and the

Davenport Corporation's last dividend was $7.00 and the directors expect to maintain the historic 3 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase ...

Suppose if you spend 1 million today on a research project

Suppose if you spend $1 million today on a research project, there is a 30% chance of success at year-end and a 70% chance of failure. In the event of failure, you can decide to invest another $1 million to continue the ...

Firm abc is financed with equity market value 400 million

Firm ABC is financed with equity (market value $400 million) and perpetual debt (market value$1,000 million). The firm has decided that the current level of leverage is not optimal and wantsto reach a debt-equity ratio o ...

Do the following problems1the country of luta has large

Do the following problems 1. The country of Luta has large capital flows with the U.S.It has no trade with the U.S, and will not have trade with the U.S. in the future. Its interest rate is 6%, the same as the U.S. inter ...

In groups of 3-4 students should choose firstly an industry

In groups of 3-4, students should choose firstly an industry and secondly two (2) ASX listed companies in this same industry upon which to undertake a fundamental analysis. Fundamental Analysis seeks to identify factors ...

Defend the following statement once an innovation appears

Defend the following statement: Once an innovation appears, it will remain even after the impetus for its development disappears. Give an example.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate