The Real Estate And Mortgage Meltdown Essay

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 create a perfect storm that would wreck the real estate and mortgage market in the United States. Toxic debt was bundled together and sold by financial institutions that preyed on poorly informed real estate investors. These investors were individuals with little credit worthiness who bought numerous properties with the mistaken belief that they were guaranteed to increase in value; these…

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