The Economic Crisis: The American Dream And The Foreclosure Crisis

828 Words 4 Pages
In 2007 the financial market plummeted along with the housing market. This event overwhelmed the economy and the real estate market as a whole. Millions faced foreclosure and short sales; thousands lost their homes. Many had to relocate while others faced homelessness. There was a domino effect; vacant homes created increased crime and as a result buyer confidence declined for those who were financially able to buy. Homeowners were underwater; their mortgages were greater than what their homes were worth. It was a frightening time throughout America.
For decades purchasing a home has been the American dream, a milestone in one’s life. And for some time, during the recession, it was thought that the American Dream was now a thing of the past. However, despite such harsh realities and devastating losses such as the loss of a home by foreclosures and short sales, which millions faced, the American dream is still embedded in the fabric of our lives and buying a home is as feasible today as it has ever been.
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It takes four years to recover from a short sale and seven years to recover from a foreclosure to pursue a conventional loan. While enduring this four to seven year waiting period they’ve also had the opportunity to clean up any judgments or any other debts that were damaging to their credit making them eligible mortgage

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