National Real Estate Disaster

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