Video Newsletters
|
Wilmington, NC Real Estate Market Analysis for 2021, Housing Crisis of 2008 and The Bankruptcy Protection Act of 2005 Projections for 2022 (go to 2021 market analysis) |
This video was created in January of 2022 by Brad Van Amberg. The media has long blamed the banks for creating the housing crisis of 2008. Yes, the banks bundled prime Fannie Mae conforming loan with sub-prime loans. The sub-prime loans yielded much higher interest rates than the conforming loans. There was also more risk that some of these homeowners would default on the loans. If the banks had not been so quick to foreclose the market might have been able to maintain its values to enable the troubled owner a chance to sell their home. The Bankruptcey Act of 2005 created problems for homeowners that led to the massive defaults on mortgage which led to the housing crisis which led to the collapse of 359 banks starting in 2007.
The Bankruptcy Protection Act
of 2005
Banking Lobby's Biggest Victory
of 2005
Banking Lobby's Biggest Victory
Here we are heading into 2020 and we are still feeling the effects of the Bankruptcy Act of 2005. Our markets have not recovered to the market sales prices of 2007. Many homeowners still remain under water with their homes and are unable or unwilling to place their homes on the market. The result is the inventory shortage that this area is experiencing.