Real Estate Bargains and Deals

The Foreclosure Crisis

The pinnacle of the American dream is the purchase of a home. Nothing says you've made it like getting the key to a piece of property that has your name on it. Whether it's living off the fat of the land or having forty acres and a mule, history and literature have spoken of the power of home ownership. So what deferred that part of the American dream so completely that the economy of our nation fell apart when the housing industry's bubble burst?

The foreclosure crisis occurred because the banking industry did not build on a rock. They built on the shifting sand of predatory lending. Greed got in the way; the irresponsibility of doing whatever it would take to make a sale; putting a person in a home whether he could afford it or not eventually became the straw that broke the camel's back. Creative financing destroyed the lives of millions of Americans creating the trauma of losing the one thing that said he'd made it. Banks with what seemed an unlimited cash flow extended too much credit. It was as if rules and regulations did not exist. People who couldn't afford any home were allowed to buy too much home. The self indulgent attitude of Wall Street bankers allowed them to pursue buyers without checking their income; subprime mortgages became the norm and the once strong housing industry which had been the economy's backbone fell like a house of cards.

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