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Real Estate Market Collapse

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In 2007 the real estate market collapsed leaving homeowners doomed. The collapsed had a negative impact on the United States economy and it also had a negative impact on five million families nationwide. Today, the real estate and mortgage market has significantly improved. This improvement allowed previous homeowners to have a clean start. The situation of the market has changed and advanced since the collapse. The homeowners that were affected by the real estate and mortgage market collapse were known as boomerang buyers because most of the families are or were allowed a second chance. As a result of the collapse, there were many mistakes that are avoidable today as to lessons learned. The market crash was a devastation but over the years the silver linings began comforting the nation. Today, many boomerang buyers are benefiting from their past mistakes. Consequently, there were lessons learned, …show more content…

Lessons were learned for the greater good of the United States economy, the families that were negatively affected, and also the real estate and mortgage market. Many large banks became hesitant to approve loans for the families that foreclosed on their homes. This allowed many small banks to take advantage and help these families. Over the years, the big banks began trusting the home buyers again but not without precautions. Many banks required excellent credit reports and very high credit scores. This was to assure the banks that these families were more than qualified to pay their mortgages and to avoid a repeat of the real estate and mortgage market collapse. Today, the market is continuing to improve trying to avoid past mistakes. The U.S. economy is now improving as a result of the precautions the banks had taken. Before, there were not many limitations on being approved for a mortgage loan but today the banks are strict in ways that protects the banks, the market, and the

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