homeownership here in America? If you haven’t, let me point out a few of the
things that they mention in those commercials; owning a home is a great
investment, the security of owning your own home over renting and of course
the dream of homeownership for first time buyers.
don’t mention in those commercials…why so many of your fellows Americans are
losing their homes.
believed in the economy. People were still making home improvements because
everyone believed that improving our homes were investments that added value
to them. Some of us had available cash to make these home improvements, but
many of us did not. At least we didn’t have the cash savings to make a home
improvement, but we did have something else that was just as good. We had
Americans wanted to make improvements to their homes, while there still was
the incentive of tax credits to make them. Many of those people decided to
use the equity in their homes to make these improvements. What this meant
was that they were borrowing against the current value of their homes for
as their credit was in good shape. In many cases these improvements not only
made these homes beautiful inside and out, but they also helped raise the
perceived value of those homes, but then came the recession.
recession caused many problems for America. Some of the things that began to
recession finally was recognized for what it was; big business began trying
to control their costs. Many large companies started getting rid of
employees through downsizing. This happened at all levels in these
businesses, and many big bosses who were downsized received very nice
American jobs were sent overseas, where labor was cheaper and so was the
cost of doing business. This is when many blue collar workers began to start
looking for work in other factories. Unemployment claims began to rise, and
this had a negative effect on the stock market.
the market lost large amounts of their savings, and many of these investors
were baby boomers. And for those who just speculated in the market, well
they were not happy with what they saw happening to the economy. They were
scared, so they sold off their stock holdings, which sent the stock exchange
into several massive losses over many months, which still continues today.
Americans. For those Americans who either took out a second mortgage or
re-financed their homes to make those home improvements, in very short order
started to notice that their property’s value began to drop, and their home
no longer had its appraised value.
mortgages, and with no recourse as property values around the nation
reflected this trend. With many Americans on unemployment, and out of work
for a year or more, banks and mortgage companies started to report increases
in late payments and defaults on mortgages. In several instances, some banks
and mortgage companies would not even work with homeowners to make
affordable terms for them, forcing them to leave their homes and in many
cases foreclose on their property.
really tightened their belts in regard to credit lending. Many people, who
desperately need help and would benefit from new terms in their mortgages,
simply do not have the equity in their homes to even be considered for home
Americans have either lost their dream of homeownership, or may just simply
be thinking twice about it right now.