9.3 million Americans went through a foreclosure or short sale between 2006 and 2014: Home shopping in Compton California.
ByOne new argument I’m seeing is that over the last decade, 10 million Americans lost their homes through the foreclosure process and given the timing, their credit records are now absolved and they are itching to get out and buy. Unfortunately, most will rely on fixed rate products and the ability to leverage up is preventing them from buying and pushing them into rental Armageddon. Of course those that sell homes see this as a potential bonanza of potential clients. But what are you going to sell? Although inventory is picking up, competition is still fierce and many of these households lost their homes because they were levered up to high. They are in the market for affordable homes which currently, there are very few. The logic goes that since lenders are checking incomes and these loans are fixed, everything is perfectly fine. Yet we are in a big bull run for the stock market and trends do change. In California, housing is incredibly unaffordable to most families. Is there something to be said about those 10 million foreclosed families?…
