Housing Crisis Continues Unabated
The end sadly, in the case of the US housing market’s decline, is not near. Rather, the decline and the issues faced by homeowners seems as if it will continue downward with few bright prospects for the future.
The Sacramento Bee writes of the victims:
In a sense, New Century and other fallen lenders — as well as homeowners who are losing their properties — are victims of history. Until now, most experts say, the housing market had never undergone a serious swoon as long as the economy was still growing. Lenders took comfort in the argument that only a recession could do major harm to the housing sector and ignored signs that the market was going cold.
With such a downturn, many have been ignoring the benefits of obtaining a 2nd mortgage as a hedge against the steady housing decline.
As lenders continue to close up, it makes it more difficult for borrowers to find financing options, and as a result they default causing more lenders to close. The vicious cycle continues, hurting lender and borrower alike, and keeping the crisis quite alive.
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