Housing Market And The Foreclosure Crisis Essays

Housing Market And The Foreclosure Crisis Essays

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In 2008 the housing market took a turn for the worse and many lending agencies such as: Freddie Mac and Fannie Mae knew that the unusual surge in home buying was going to eventually come to an end. In 2008, banks in the U.S. repossessed more than 850,000 properties and about 404,000 properties in 2007. Countless family’s loss their homes because they were approved for a mortgage that they could not afford after the economic downturn jobs were loss and banks foreclosed on countless homes. As of today, the housing market is on the upturn and the victims of the foreclosure crisis are beginning to find new hope. In July of 2014 the sales of existing homes rose to 2.4% with an annual rate of 51.5 million homes a year. Lastly, as of today the option of renting-to-own is allowing foreclosure victims the opportunity to build equity to help make financing a mortgage much easier.

In early 2005 many banks had very loose lending standards and it was not very difficult to receive a loan. There were no restrictions on qualifying anyone for a loan and many U.S. Citizens purchased extremely expensive homes while still only making a middle class citizen salary. This was unfortunate because many single families suffered tragic losses that could have been avoided if they were denied the loans for the homes. It’s a very ironic situation because the banks were forced to repossess more than half of the homes that they granted loans to! This action put many families in debt and caused a vast amount of banks to have little to no return on their investment, consequently the banks loss money. This was due to the subprime mortgage loans which made loans accessible to borrowers with poor credit, with no revenue to keep paying the mortgage on the property ...


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...yer is finally ready to purchase and they select a broker of their choice the broker will have a ready-willing and able buyer.

In conclusion, the housing market crash of 2008 damaged many lives and broke many homes. However, the foreclosure victims are in the process of no longer being in the shadow of debt and delinquency but are now on the verge of bouncing back from what one would call “bad first half performance”. The housing market is now on the upturn and more homes are being bought and develops are constructing more homes every day. The option of renting-to-own is now available because many first time buyers want to take the time to build equity to purchase their homes and consequently receive a lower interest rate when purchasing. The victims of foreclosure are ready to become sensible buyers and provide homes for their families and I find no fault in that.

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