The Foreclosure Crisis And The Housing Crisis - 1172 Words

When the housing bubble burst in 2007, 7.3 million borrowers lost their homes due to foreclosure or short sale. These â€Å"boomerang buyers† are slowly but surely recovering from financial setbacks and reentering the housing market. Conventional lenders have seasoning requirements that prevent buyers from obtaining a new mortgage until they have repaired their credit: a seven-year window for foreclosures and four years for short sales. In 2007, there were over 1.28 million foreclosure filings. The number of foreclosure filings remained above historical national averages for eight years, growing every year until 2010, when levels capped at 2.87 million. According to RealtyTrac’s 2014 Year-End U.S. Foreclosure Market Report, national foreclosure filings--including bank repossessions, default notices, and scheduled auctions--saw an 18 percent decrease from 2013 to 2014, but still had not reached pre-recession levels. In 2015, nearly 700,000 of boomerang buyers will be eligible for new homes, according to TransUnion. Over the next five years, 2.2 million borrowers will again be eligible for mortgage credit as their seasoning periods expire. These boomerang buyers represent a wave of potential pent-up demand in the housing market that could reshape the housing market. However, so far less than half of recently eligible borrowers have purchased a home. There are several possible reasons for this: they may believe they are not eligible even if they are, they may be reluctant to seekShow MoreRelatedHousing Market And The Foreclosure Crisis1605 Words   |  7 Pages The financial crisis that occurred in 2007-2008 is narrowly related to what happened with the housing market and the foreclosure crisis. In 2006, the housing market peaked due to newly available loans such as interest adjustable loans, interest only loans, and zero down loans for people with low-income jobs. Housing prices were increasing radically and new homeowners were taking out mortgages that they would be unable to pay for in the future, all in order to be able to afford homes with such steepRead MoreThe Housing Crisis Of 20081630 Words   |  7 PagesStr eet to individuals benefiting from the booming housing market. However, while all this was taking place something important was about to shift the United States economic landscape. I am referring to the Mortgage crisis or also known as the housing crisis of 2008. My goal in this paper is to bring this source into the economic discussion by connecting into the current and 2008 foreclosures that set off other problems in our economic and real estate housing history. To achieve this goal, I have organizedRead MoreThe Problem Of Foreclosure Crisis1331 Words   |  6 Pagesperfect vision as a foreclosure epidemic struck the country, leaving millions of Americans without a home and in financial straits in the aftermath of the 2010 Foreclosure Crisis. However, as time passes, moving Americans away from the economic devastation of the crisis, foreclosure victims are increasingly qualified to take advantage of the growing number of options for potential homeowners to purchase their own homes. Loans that had at one point been impossible for foreclosure victims to receiveRead MoreThe Subprime Mortgage Crisis in the U.S Essay1586 Words   |  7 PagesThe argument over who should be at fault for the subprime mortgage crisis and housing market collapse in the United States has been a heated debate. Even though home foreclosure keeps rising, there should be some accountability for the economic meltdown resulting from the subprime mortgage situation. Should we blame banking institutions, mortgage lenders, brokers, and investors for this crisis? Should minorities be blamed for recklessly accepting loans and defaulting on them after realizing theyRead MoreThe Foreclosure Crisis Within The United States953 Words   |  4 PagesThe foreclosure crisis, which is often termed as foreclosure gate remains an on-going conflict, which refers to the epidemic closure initiated by lenders and various large banks in the United States. The direct consequence of this foreclosure is linked with the spread of fear amongst the investors i n the United States. A number of studies have also evaluated the increment in the suicide rates after the inception of foreclosure crisis. The crisis relevant foreclosure which glided over the nation yearsRead MoreThe Foreclosure Crisis1083 Words   |  5 PagesThe â€Å"Foreclosure Crisis† cannot be solved it can only be slowed by programs and policies offered as management tools to curtail the volume of home owners going into foreclosure proceedings. This â€Å"Foreclosure Crisis† should be addressed from the perspective of both the home buyer/owner and the lender. Both sides of this coin are required to create a balance of suggestions, policies and modifications towards the lending practices of mortgage companies and the reiteration of the home buyer’s positiveRead MoreSolving the Foreclosure Crisis Essay1092 Words   |  5 PagesThe foreclosure crisis was one of the harbingers of the coming economic recession. This was the issue that shifted the focus of the 2008 presidential election from the Iraq War to the economy. As one can imagine, many individuals and families are currently hurting as a result of this foreclosure crisis. High unemployment rates and lack of job creation leave very few options for already struggling homeowners. Because the housing industry composes such a large part of the American economy and affectsRead MoreThe 2008 Financial Crisis Essay1326 Words   |  6 Pagesintroduction The 2008 financial crisis led to a sharp increase in mortgage foreclosures primarily subprime leading to a collapse in several mortgage lenders. Recurrent foreclosures and the harms of subprime mortgages were caused by loose lending practices, housing bubble, low interest rates and extreme risk taking (Zandi, 2008). Additionally, expert analysis on the 2008 financial crisis assert that the cause was also due to erroneous monetary policy moves and poor housing policies. The federal governmentRead MoreA Practical Solution to the Foreclosure Crisis1122 Words   |  5 PagesIt is no secret the foreclosure crisis has played a significant role in the financial meltdown of the past year. The collapse of the housing marketing has brought thousands of families across the country to financial ruin, forcing many out on the streets. Although the common consensus is that something must be done to stabilize the foreclosure crisis, the agreement ends there. Proposed solutions to the foreclosure cr isis have drawn controversy from all political affiliations and walks of life. ThisRead MoreSolving the Foreclosure Crisis in Low-Income Neighborhoods Essay1168 Words   |  5 PagesIn cities across the United States, the ongoing foreclosure crisis has caused the rapid spread of urban blight. The proliferation of foreclosed properties has consequences far beyond the hardships encountered by families facing foreclosure. Rising crime, unstable neighborhoods, and local budget problems are but a few of the external effects created by an overabundance of foreclosed property. Dealing with such property requires a two-faceted approach by local governments that focuses on acquiring