Real Estate Meltdown

802 Words 4 Pages
The real estate and mortgage meltdown that occurred several years ago affected people across the nation. There are lessons to be learned from the meltdown, and if people remember these lessons it is possible to avoid a similar scenario in the future. Despite the damage that was done to so many lives, there are some silver linings to be found in the aftermath of the meltdown. Additionally, many real estate buyers today are benefiting from the effects of the meltdown and from the lessons that were learned as a result of it. The real estate and mortgage meltdown that occurred several years ago negatively impacted many lives, but there were some positive outcomes from the meltdown that are observable today.
The real estate and mortgage meltdown occurred due to a combination of greed and a failure of investors to recognize a real estate bubble that was created by loans that were made available to applicants whose credit did not support the loans they were given. Poor oversight by government entities coupled with blind faith by investors that the market would move ever upward combined to
…show more content…
The necessary correction that occurred in the market opened the door for new investors to build wealth, and it opened the door for new families to own their own homes. The meltdown revealed poor lending practices and manipulation of investors by financial institutions, and it allowed for the correction of these problems. Government entities, financial institutions, investors, and consumers have all learned from the mistakes that led to the real estate and mortgage meltdown, and the lessons learned will provide greater benefits than any negative consequences which occurred as a result of the meltdown. As long as no one forgets these lessons, the meltdown that occurred will have been a positive event for the real estate and mortgage

Related Documents