| The current real estate crisis in the US is | | | | |
| only going to get worse as the sub prime | | | | Falling property values means many people end |
| loans continue to switch from the honeymoon | | | | up in situation where they have negative |
| rate to the higher rate that has already seen | | | | equity in their homes, they can't sell to |
| many home owners pushed over the edge and out | | | | repay the debt and the banks become very |
| of their homes. This is an economic disaster | | | | uncomfortable with the situation. The money |
| that will continue to have serious effects on | | | | market tightens up and the situation |
| the US real estate market and the economy for | | | | compounds. It's a national disaster in the |
| years to come. | | | | eyes of some, so much pain and suffering for |
| | | | families. The economic fallout is massive and |
| The banks should shoulder some responsibility | | | | will only get worse as America rushes towards |
| for to the crisis after all they set the | | | | a recession, the soft landing of the real |
| lending criteria along with the various | | | | estate market has turned into a giant crash |
| financial institutions have made it very easy | | | | and the ripple effect will travel right |
| to obtain a home loan where in many cases the | | | | around the whole globe. The banks have now |
| loan should never have been granted. Many | | | | started to try and work with people to keep |
| people were steered into sub prime deals when | | | | them in their houses and they are negotiating |
| they did not need to go that way, they could | | | | where possible. |
| have easily qualified for a standard loan but | | | | |
| were steered towards the sub prime deals by | | | | The foreclosure market is running hot in |
| the lenders who were keen to pickup the more | | | | almost every state, many construction |
| lucrative commissions. So now the time has | | | | companies are falling like flies and are |
| come to pay and people are walking away from | | | | offering amazing deals to maintain cash flow |
| homes on mass, the banks are being forced to | | | | and viability. Oil has pushed closer to the |
| foreclose and property values are falling as | | | | $100 per barrel mark to add to the problems. |
| a result. | | | | |