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Strengthening Housing Market Gives New Hope to Homebuyers and Holders of Troubled Mortgages

January 25, 2013

After a long and strange rebound effect, a slow but steady growth in the housing market means a better real estate environment for all. In the last four years of real estate recession, various theories have been advanced as to the causes of the current disaster, some quoting others about a “wealth effect” which supposedly tied real estate troubles to a shrinking lower class. However this and many other theories are based on lack of research vigor. The truth is that there are two factors which lead directly to the real estate slump: • Due to some liberal bank regulations, lenders were able to package low-grade C rate mortgages with a decent amount of B grade investments, throw in a little a grade investment, and they had created some serious toxic assets. With the amount and risk of the mortgages misrepresented, securities were issued which were truly deserving of a junk grade. • There was a glut of housing for sale due to dilapidation, foreclosures, and excess low-quality const http://first-united-services.com/2013/01/25/strengthening-housing-market-gives-new-hope-to-homebuyers-and-holders-of-troubled-mortgages/

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