The Las Vegas Housing Market Crash of 2006

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Las Vegas Housing Market Crash of 2006, who is to blame?

By

Tina Beach

In the United States, the lending industry’s lack of aggressive monitoring was a big part of the housing market crash of 2006. The Las Vegas housing market, once a booming industry in 2003 to 2005, is now one of the top 3 cities in foreclosure properties. I sat with Suzanne Pashnick to get her take on what happened, who is to be blamed and what can be done for the city to recover. Suzanne has been in the real estate field since 1995 and began her career in Michigan. In 2005, she moved to Las Vegas and continued her career in real estate and is currently an agent for CENTURY 21 MoneyWorld and remains licensed in Nevada.
Las Vegas during the boom of
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It’s their income and without their income, they are like everyone else. They can’t pay their bills, they can’t pay for food and gas, and they can save for the future.
The public was uneducated in how the process worked but seemed not to be bothered because it got them into the house. They don’t want a mortgage, they want a home. A home they can raise a family, build equity, build a life, have a sense of freedom. That “boom” market gave it to them. The lenders probably told them to just sign here for now and we’ll get your mortgage down to where you really want it and in a couple of years and we’ll figure out the rest. When you have no idea that the market would crash as it did, are you prepared? No, because who is thinking that your home is losing value, that people are going to lose their jobs or that the economy would turn into a recession. Not the banks or the public thought that. The perception was that the market was going to go up or stay steady, so the homeowners were going to be able to refinance and get rid of their current payment. People were going to make more money, they were going to get a raise in a couple years at their jobs and everything would be better. So when the homeowners refinanced their loan they would get a fixed rate mortgage for 30 years. But that never happened.
“Awareness is the key here. Being aware of what is happening and being ahead of the frenzy that follows once the masses
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