There are complexities to offer r explanations for what has caused such a meltdown in the mortgage industry and steep declines in property values. Many of the reasonings offered are well thought out. Obviously it is the essence of vulture capitalism.
The most commonly cited cause among economic analysts is simply greed and corruption on the part of nearly everyone in the mortgage and real estate industries. And, of course, there were massive levels of greed among the lower level workers and participants in the market. This is appearent with American Deamers who want home their way.
Appraisers over-valued homes, Realtors listed them for these unwarranted prices, and loan officers provided loans at higher values in order to reap higher commissions. Homeowners were also not innocent, as many of them lied on mortgage applications to increase their incomes and qualify for homes they knew they could not afford. Banks provided incomprehensible mortgages with low teaser interest rates, basing the qualifications on the applicant’s ability to pay the artificially low rate, not the reset payment even based on current market conditions. These circumstances all combined to create a highly over-valued real estate market and vast numbers of homes sold families who simply could not afford them. especially in NJ where people canot afford the home they grew up in. Others who amke a high income and insist on McMansions and rural development and destruction.
A another cause is the falling value of the dollar, decreasing the purchasing power of ordinary Americans. Devaluation of the dollar causes imported goods to increase in price, contributing to higher energy prices, food prices, and expenses for nearly every good sold by the largest retailers. Homeowners are also robbed of their money in the form of inflation caused by the federal government borrowing money and printing money to wage war and provide social programs, thereby devaluing the dollar further. Once Congress passes a budget and realizes it will not bring in enough money to pay for every program, they rely on borrowing money. When this does not make up the shortfall, they simply print the money and have the first use of it. This inflation takes away the wealth of citizens, as their once precious dollars become as common as confetti and worth about as much. Lets not forget low wage workers and people who have no empowerment to maintain their dreams of owning a home.
Again, the causes leading up to the declines in the real estate market can conclusively explain the effects. But, homeowners, whether they are in danger of losing their homes or not, would do well by researching some of the reasons their family and neighbors may be facing foreclosure. Only by learning from the mistakes of others, and the American Dream trap is designed to facilitate the loss of their homes, this is not new, but it is more epidemic.
For information http://foreclosurefish.com