Housing Market Crash of 2007 & Job Description
2 views | +0 today
Follow
Your new post is loading...
Your new post is loading...
Scooped by Evan Frohlich
Scoop.it!

The Housing Crash Recession . NOW on PBS

The Housing Crash Recession . NOW on PBS | Housing Market Crash of 2007 & Job Description | Scoop.it
more...
Evan Frohlich's comment, March 13, 2014 9:23 PM
The fact that the housing market was in a bubble should have been evident to the economist of that time. There was no historical precedent for the drastic raise in house prices that began in the mid-nineties. Those coincided with the stock bubble. The raise could not be explained by fundamentals of supply and demand in the housing market, most of which indicated that house prices should be stable adjusted for inflation or even falling.
Evan Frohlich's comment, March 13, 2014 9:29 PM
The unfortunate start of a housing bubble created the climate in which homebuyers became eager to take on mortgages that they could not possibly afford and banks and investors were willing to make loans that couldn't be paid back. If house prices always rise, then homebuyers can also meet their mortgage payments by borrowing against the new equity created. They can simply sell the home and pocket the profits. The lenders could apply the same logic. If house prices are rising rapidly, then it doesn't matter if borrowers can't meet mortgage payments. If house prices are rising, then it is likely that a foreclosed home will cover most or all of the value of a huge mortgage. The mentality of the people that the bubble created made the environment in which bad lending practices could thrive. People were not handling their money well at all.
Evan Frohlich's comment, March 13, 2014 9:33 PM
The abusive mortgage practices that were being reported so prominently were widely known years earlier. When millions of bad loans were being issued all over the country, it is not being done in quietly. People did try to get the Federal Reserve to tighten up its regulations on bank lending practices, including Greenspan's fellow accomplice governor Ned Gramlich. Greenspan ignored these urgings, and insisted on allowing the banks to continue their predatory lending without precautions. This helped to sustain the bubble and snare millions in loans that they could not pay.
Scooped by Evan Frohlich
Scoop.it!

The Housing Market Crash of 2007 and What Caused the Crash | Stock Picks System

The Housing Market Crash of 2007 and What Caused the Crash | Stock Picks System | Housing Market Crash of 2007 & Job Description | Scoop.it
The Housing Market Crash of 2007 was the worst housing crash in U.S. history. The Housing Market Crash of 2007 was the cause of the financial crisis.
more...
Evan Frohlich's comment, April 6, 2014 10:56 PM
The third and final house was 524 Homewood. This was our last hope. It had a pretty exterior but had no off street parking. Walking into the home, it gave off an inviting atmosphere. A large wood burning fire place sat in the front middle of the living room. The ceilings were high and there was lots of space in the house to move around in. I walked upstairs without my mom and investigated by myself. All of the bed rooms were substantially large with wood floors except one with a stained carpet. The master bedroom had attic access, which i thought was strange, a nice walk in closet and decently smooth walls. The second and third bedrooms were practically identical and were on opposite sides of the hall. The roofs were in great condition and the siding was perfectly fine. Basements are a key part of real estate and this basement made the other ones look like junk. It was ten times bigger than the other two and it was in great shape. This house had great potential to be invested in. We like this one.
Evan Frohlich's comment, April 6, 2014 11:00 PM
The third house was cheaper than the second one and was a much better property. The Fairmont house was the one we looked into. It is priced somewhat lower than the houses around it which is a very good thing.
Evan Frohlich's comment, May 4, 2014 8:03 PM
We decided to bid on the third house. It was well priced for the size and quality of the property. My mother and I called the real estate agent, went online, and bid on the property.