Sub prime lending has lead around 56 lenders to leave the business. It has really paved the way which is very dangerous for the lenders. Now the lenders are seeing the increase in number of foreclosures which is really increasing at an alarming rate. This is really a curse for the real estate business. They never thought that by easing out the loan mechanism they are hitting at the branch of tree on which they are sitting. It is really an awkward experience for most of us. You will hardly find any loan scheme which is not easily available. However the list of foreclosure has also increased a lot in the past few years. This has really prompted everybody to check the position.
The lenders in early 90's realized that the people are not able to get the loans with an ease. Hence they brought forward many schemes which proved out to be very easy for the people to get the loan. However there was racial discrimination eminent since the African-Americans found them selves away from any such advantage. They really thought that they are not benefitted as the white Americans were. However as we entered the new millennium the scene changed. There were lots of foreclosure properties for the takings. However the lenders do not took notice of that. They keep on providing new schemes in both fixed rate and adjustable rate loans.
However you will find out very soon that the lenders were making a mistake. There was no racial difference in cheating. People of all colors did everything to heart the lenders. You will notice today that everyday there are thousands of foreclosures in almost every city. What is the reason behind this? I must say that the condition became very alarming.
The lenders went on providing the loans at even reduced rates. But they never realized they can even be cheated. And this happened too making the whole market down. The present condition of the market is the result of all those foolish steps. This is really appropriate to say. It is really a worst condition to be in. and nobody is still sure that how will they be able to get out of it. The people are escaping somehow since they even do not find any harm in foreclosing.
The white house has really shown its sympathy as well as the seriousness as far as the real estate deal is concerned. I must say that you will definitely find it to be a dangerous situation and I must say that the government is showing its keen interest in saving the country from the real danger of foreclosure whose number is increasing day by day.
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