The Financial Crisis Of Theu.s Economy

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Within the financial crisis of 2007, the U.S economy took a turn for the worst. The unemployment rate shot up to 10%(cbpp.org), and as a result there was less money within the economy for: goods, services, and this essay’s key topic; housing. As a result of this economic situation, there was a significant increase in the amount of houses being foreclosed upon. This was mostly caused by the owners of said houses taking out risky high interest loans, because of bad credit, while also being within financially troubled times. The risky and high interest loans caused a chain reaction that resulted in these people defaulting on their payments when “trigger events”, caused by or worsened by the financial crisis, occurred. It is now 2014, and many of the people who defaulted on their mortgage and had to foreclose are now starting to look towards the housing market again. However, they must be able to protect themselves from the problems that caused them retreat from the housing market in the first place. Luckily for these buyers, the current real estate market is a lot more favorable than what it once was. Now, many ways exist for the Boomerang buyer to bounce back and try their hand at obtaining a house again. These ways include the new Federal Housing Administration change, the rent-to-buy house buying option, and generally being prepared. The Federal Housing Administration, “provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its

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