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