The Mortgage Crisis And Attendant Real Estate Collapse Of The Late 2000's Crisis

1543 WordsDec 14, 20157 Pages
The mortgage crisis and attendant real estate collapse of the late 2000’s was disastrous for numerous homebuyers and ushered in a time of economic hardship for many in the United States. This crisis laid bare problematic industry practices, some predatory and others merely short-sighted, as well as buyer behaviors that were both financially unviable and psychologically damaging. In spite of the havoc wreaked by the real estate collapse, we can learn valuable lessons by examining the buyer behaviors and presumptions of that time and adapting our current attitudes and behaviors accordingly. Improved consumer behaviors are not the only positive results of the real estate collapse. Meaningful regulatory changes, designed to protect buyers, have been effected within the lending industry as a direct result of the crisis and its fallout. The lessons we learned and the changes to lending practice combine to potentially serve as a great benefit to real estate consumers in today’s market, both those new to the housing market as well as those “boomerang buyers” who are returning to the market after having experienced the mortgage crisis firsthand. Lessons learned After Hurricane Andrew leveled parts of Florida in 1992, building codes were revamped, and architects, engineers and builders made note of where structures had failed and adjusted their building practices accordingly. Responding to catastrophe by observing causal relationships and adapting behaviors is what makes humans
Open Document