The Foreclosure Crisis Of Foreclosure

However, hope might be on the horizon for the victims of the mortgage disaster of 2007/2008. Home buyers who were foreclosed upon years ago, or boomerang buyers, are beginning to be eligible to buy homes again. While some feel hope after feeling bamboozled by lenders and Fannie Mae and Freddie Mac, some feel anxious and fearful of the thought of buying again. Yet there are lessons that have been learned by the mortgage meltdown. Fannie Mae and Freddie Mac provided a lesson for the

The housing crisis of the late 2000s rocked the economy and changed the landscape of the real estate business for years to come. Decades of people purchasing houses unfordable houses and properties with lenient loans policies led to a collective housing bubble. When the banking system faltered and the economy wilted, interest rates were raised, mortgages increased, and people lost their jobs amidst the chaos. This all culminated in tens of thousands of American losing their houses to foreclosures and short sales, as they could no longer afford the mortgage payments on their homes. The United States entered a recession and homeownership no longer appeared to be a feasible goal as many questioned whether the country could continue to support a middle-class. Former home owners became renters and in some cases homeless as the American Dream was delayed with no foreseeable return. While the future of the economy looked bleak, conditions gradually improved. American citizens regained their jobs, the United States government bailed out the banking industry, and regulations were put in place to deter such events as the mortgage crash from ever taking place again. The path to homeowner ship has been forever altered, as loans in general are now more difficult to acquire and can be accompanied by a substantial down payment.

The economic crash of the late 2000s severely affected my family. We moved to Spanish Fort, Alabama while the market was up in 2005; when the market crashed, we could no longer afford our mortgage and the house wasn’t worth nearly what we owed. My parents were forced to file bankruptcy after foreclosure notices, and we were forced to move- a huge financial lesson learned. As a result of my experiences, I rarely loan any money, avoid all credit cards, and am currently only in debt with my college education. Even with income cut in half by my mother’s recent disability, my family has bounced back, and it wasn’t nearly as hard as most people would expect. It just takes a little management. The market for “boomerang buyers” is astronomical, and the real estate business is a huge market to buy into. If done properly, depressions are the best times to buy real estate, and it’s an idea time for those who can’t purchase property to rent until they’re capable of excelling.

When the Stock Market crashed in the late 2000s, millions were forced to leave their homes by means of foreclosure. Now, after many hardships, the economy is on the rise; and the housing market is making a comeback. Its previous victims are beginning to recover and start fresh in this young economy. The low interest rates and surplus of homes have made the once expensive houses more affordable to those who are seeking to restart. Although these “boomerang buyers” are able to afford these homes, their past record of foreclosure has hurt their credit score which makes it difficult to acquire loans in this cautious market. However, there are several steps such people can take and many methods they can

Foreclosure in the last couple years has become a well-known word to a lot of young people, and has become more frequent in the last couple of years. My family has gone through the process and it was a very emotional time for us all. The only home my family was able to get into was one that could be rented with the option to buy. Having more homes in the market that have that option makes it not only more convenient, but more affordable for families like mine who have gone through foreclosure.

According to Desmond, Arleen is not alone in her dilemma. A great many Americans are being evicted in light of the fact that they cannot pay the rent (Desmond, 2016,p 4). Like Arleen, many poor families are spending the majority of their income on rent and utilities. In fact, using estimates from The American Housing Survey (AHS), 1991-2013, Desmond finds that, in America, most poor renting families use over half of their income on housing; and, roughly one quarter spend more than 70% of their income to pay rent and utilities (Desmond, 2016, p 4). Aside from the fact that Arleen’s monthly welfare stipend of $628 has remained stagnate for years, housing costs have soared. Due in part to the foreclosure crisis, and the deluge of millennials into the rental market, the demand for rental stock has risen.(Sisson, 2016). At the same time, escalating building and labor expenses, and declining subsidies, have helped to slow new construction. Thus, demand for rental housing is exceeding supply, resulting in escalating rent prices. Furthermore, the razing of older public housing projects and defunding of government assisted housing has pushed poor families into the private rental market (Sisson, Patrick may 19, 2016). As a result, most poor families in America today live unassisted in the private housing market. In fact, in 2013, 67 percent of poor renter households did not receive federal housing assistance (Desmond, Matthew, 2015). One day, Arleen stopped by the Housing Authority

Following the 2006-2008 housing market crash, 4.8 million of homeowners lost their most valuable assessment to foreclosure, and another 2.8 milliongave up their homes in short sales. These former homeowners that are reentering the housing market after losing their homes during the housing market financial crisis are now part of a wave of “boomerang buyers.” According to Real Estate experts, boomerang buyers who are returning to the market were at least 10 percent of all United States home purchases during 2014. More important, this trend is expected to increase in 2015 and 2016 as more boomerang buyers become eligible for new options to get their dream homes again. The unquestionable fact is that a great majority of boomerang buyers are hardworking, honest people that got caught in the middle of one of the biggest housing crisis that occurred in the last 100 years. Fortunately, those housing crisis’ victims are beginning to see the light at the end of the tunnel since several options are becoming available to them in order to get back into home ownership. Among these options, I like to explore some available avenues for those boomerang borrowers to include the rent to own option, Veterans Affairs backed loans, and owners financing option.

Therefore, with distance (minimum two years) between the prior foreclosure event and locating a potential new home, the “boomerang buyer” is facing the opportunity of a lifetime to buy a home again(Martin).

Approximately five million homes have been foreclosed since 2007 which, along with an untold amount of short sales, have caused an estimated $1 trillion in lost wealth in the United States. This crisis affected our minority populations and their communities to a larger extent with estimations of 17-20 out of every 1000 minority homeowners suffering foreclosure versus only 10 out of every 1000 Caucasian homeowners. This was due to targeting by the subprime mortgage companies specifically targeting African-American, Hispanic and Asian buyers with risky mortgages even when they could have qualified for prime loans. Also affected were many who lost their homes due to income loss due to the Great Recession which had its beginning in the subprime mortgage crisis. Many of those that have lost their homes during this crisis are interested in being homeowners again and this essay will cover some possible ways for all of these boomerang buyers to enter into the housing market again.

During the last fifteen years, the housing market has been through a lot. For many, what appeared to be an investment in their future turned into a ruinous mistake when the housing bubble burst. In 2011, nearly four million homes were foreclosed upon in the United States. Three million, nine hundred twenty thousand, four hundred and eighteen families and individuals lost their homes to foreclosure. Since then, the economy has begun to repair, and foreclosure rates for 2014 are projected to be the lowest they have been since 2007. We are starting to heal, and the people who suffered most are starting to look for a second chance. These “boomerang buyers,” who experienced foreclosure and are looking to buy again are becoming a valuable part

The market crashed several years ago leading to the foreclosure crisis which forced Americans out of their homes. Since then the real estate market has not been the same nearly since. We all know market has not been the same over the past several years, but home buying is still crucial to Americans because like I stated earlier having a place to stay is important. There are always going to be immigrants coming to this country as well every year and they also need a home or two, so the real estate market is still sufficient. Which is why my family has stayed in the same house for over ten years. Past homebuyers are probably petrified about containing a home nowadays due to all of what has happened to the real estate market over the past few years, but the past has actually laid down some differences in home buying these days. The real estate market knows that there was a crisis that happened to them several years ago, so in that case the

Although many homeowners were affected and lost almost everything, there’s hope for them to move forward with the rent-to-own option. This lets the buyer commit to an agreement with a willing seller to lease the property until they can buy it. The rent-to-own option is appealing for boomerang buyers with many different backgrounds. The option suits people who do not have a strong credit rating and therefore not qualified to get a mortgage from their bank. Since qualification guidelines have become more stringent, this helps out buyers who would have a hard time qualifying because individual sellers who opt to entertain the rent-to-buy option would not be as demanding or strict as compared to lending institutions.Rent-to-own appeals to those who do not have enough money for a down payment since it lets them buy time to

In 2007, a set of financial circumstances created an economic downturn in the United States. While the root cause of this downturn is still widely debated, one thing is certain, one of the results of this mess was that a large number of people who had been homeowners found themselves facing foreclosure and financial collapse on a personal level. Since that time, buying a home has become a much different proposition. Loans can be harder to obtain and those who once had sterling credit now face a great deal of difficulty obtaining a loan to buy a house. While there are a number of time-tested options that help people buy houses on a much longer timeline, one option seems to be gaining in popularity because of the benefits it offers. Renting

Around 2006 the price of houses began to fall substantially fast. “The oversupply of houses and lack of buyers pushed the house prices down until they really plunged in the late 2006 and early 2007” (The Subprime Mortgage Crisis Explained). These actions threw investors into a big dilemma. In the beginning they believed buying the mortgages would bring them a profit, but quickly realized that the mortgages would cost them more financial damage than reselling the homes. “Nationwide, home vales have declined about 16% since the summer of 2006 and experts project that the drop will continue until homes have lost about 25% of their value” (Biroonak, 2008). In other words mortgage homes are “underwater”, that is, the mortgage owed equals or exceeds the value of the house (Biroonak, 2008). Investors and homeowners started to go more in debt trying to pay off their original debts.

Establish Credibility: According to US News, the great American dream of owning a home appears poised for a comeback. Real estate company Trulia reports that in many parts of the country, rents are rising while housing prices are falling, making buying a home more affordable. Trulia found that in 98 out of 100 major metropolitan areas, including Detroit, Atlanta, and Cleveland, buying has become more affordable than renting.” I think the mortgage catastrophe of 2001 left prospective home buyers afraid of buying a house without being extremely certain that is the right decision.