February 9, 2008
Credit Repair And Your Life In 2008
A Little History
In the late 1990s real estate values begin to increase at an unexpected pace. In response to the healthy market, lenders eased their credit guidelines. Mortgage money was plentiful. Default rates on mortgages were minimal. Home values continued to rise and lenders perceived little or no risk to their collateral. Borrowers with adjustable rate mortgages could easily refinance if faced with an interest rate adjustment. As the party continued, new lenders entered the market to capitalize on the opportunity. And as competition among lenders increased, credit guidelines eased even more.
The First Signs of Change
In mid-2005 the real estate market was peaking. A record number of Americans owned homes, and millions were supplementing their income by speculating in the real estate market. The shift began slowly at first. Alan Greenspan, expressing concern about the U.S. Housing market said that, 0at a minimum, there0s a little froth in the housing market, and it0s hard not to see that there are a lot of local bubbles.0 The media picked up on the phrase, and before long we were all hearing about the real estate bubble. Could the meteoric rise in home prices last? Would real estate values slowly stabilize? Or would […]
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