The Pros And Cons Of The Foreclosure Crisis

POP! The bulging bubble of the housing market in the United States as previously predicted finally burst in late 2007. With several contributors that previously pumped air into the over-inflated housing bubble now losing steam, the burst of the bubble (or mortgage meltdown) with its remnants was experienced by many Americans whether on a personal or a national level. The burst of the housing bubble saw many home owners lose their homes to foreclosure; short-sales and even bankruptcy as the value of their once precious homes now sunk under water. For the next few years after the “pop” of the housing market, the pieces of American families’ financial remnants were slowly recovered and lessons from this burst were learned although at the painful expense of our economy and families’ financial well-being. Two key lessons American families and lending companies were taught from the …show more content…
Although just about anyone could get a mortgage loan during the mortgage boom through subprime mortgages and other “creative lending” practices, the smoke and mirrors eventually cleared up to show that these lending practices were no more than “risky lending”. The reality learned was that if someone didn’t qualify for a home using traditional, sound lending practices, then they likely shouldn’t be given the loan. The mortgage meltdown also provided an opportunity for new, first-time home buyers to enter the real estate market as home prices were no longer over-inflated. Although the negative effects of the mortgage meltdown were felt throughout our country for several years, the lessons learned about lending practices were invaluable and opportunities for new families were created. The mortgage meltdown was just another chance for learning the hard reality of American held values, greed and