FMLNC – An additional negative impact on the mortgage market was from the effect caused by those who either could not afford to purchase or those who could barely afford to purchase but who had the intention to hold onto the properties just long enough to sell for a nice profit. Well many of these people were left holding the bag when values started to drop at rate where they were just not able to sell prior to their mortgage balances exceeding their property value. The result was that selling became impossible.
Many of these people also became victims to the mortgage melt down defaulting on their mortgages, going into foreclosure and ultimately losing their homes and having to relocate. The negative effect on their credit was to be felt for many years. FMLNC
The Federal government the party who is so often looked at to come and save the day held hearings and set up investigative boards in an attempt to determine what and who caused the mortgage meltdown. Many programs designed to bail out the banks were put into operation and billions of taxpayers’ dollars were transferred to banks and institutions to shore up their financial situation in an attempt to prevent a run on the banks and further financial calamity. The government involvement and participation can be argued made the overall situation worse or at least allowed the real estate recession to continue on longer than if things had worked themselves out without government involvement. FMLNC
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