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Mortgage Bubble
During the past decade, starting in the early 2000s, hundreds of your friends, neighbors, even your own family members, or maybe even you personally, have been affected by what is commonly known as the “Mortgage Bubble.”
You probably remember well during the last decade when homeowners across America were enticed by easy-to-find loans from banks, mortgage companies, even on-line funding companies offering to provide a first mortgage or refinance an existing property for virtually anyone.
Between the years 1997 and 2009, the national mortgage industry pumped $17 trillion of mortgage loans into the housing market, with no underwriting!
By the middle of the decade, it didn’t matter if you had a job, regular income, or good credit. All you had to do was to give your address and “prove” you were the owner of the property, and it was more than likely you could qualify for a new loan.
The names of these loans, with no income verification, no underwriting, little paperwork, a falsely inflated appraisal, and a false loan-to-value ratio that was greatly underestimated, were “Alt-A,” “sub-prime,” or “liar’s loans.”
(Yes, that’s actually what the big banks and mortgage companies called them openly!)
“Liar’s Loans!”
Everyone was doing it. The economy was thriving. Lots of folks were buying additional properties, and “flipping” them to make obscene sums of money quickly through mortgage transactions. It seemed like it would never end.
But then in 2007, signs began to emerge in the popular media that the economy was on shaky ground.
And as we entered 2008, there were warning signs that the housing market was seriously slowing down, until by the middle of that year, getting a loan or refinancing began to become very difficult, if not impossible in many cases.
Were these signs of the collapse of the “Mortgage Bubble” and the pending housing market collapse something that the banks knew was going to happen? If so, why aren’t they being held responsible for inducing you to take that loan?” Is there anything you can personally do as a distressed homeowner about it? How do you even know if you have a reason to do anything? We
can give you good, satisfying answers to these questions.
If you are interested in learning more, and how this information may be helpful to you in your personal situation as a homeowner, please go to the next part of this series:
Or, if you wish to bypass the remainder of this series and go directly to the information on how to obtain your documentation to calculate if you even have a personal injury in fact, click on the link below.
