What kinds of things will be the result of the housing market crash?
Wednesday, April 21st, 2010 at
2:06 am
I have read an article about Fannie Mae and Freddie Mac.
What will the person/group who is in authority to do so, do?
Will they kick EVERYONE out of their dwellings?
are they going to board up each and every dwelling unit of the homes that are not paid for ?
What will happen to people (simple people, rich people, normal every day people like me) when the housing market crashes?
I am not a home owner I live in an apartment, but don’t these apartment properties have to deal with the housing market as well?
Real Estate Professionals
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Tagged with: Apartment Properties • Dwellings • Fannie Mae • Market Crashes
Filed under: property crash
There was not, nor will there be a “crash.” This is a correction to a series of abnormal financial happenings. Remember that rule you learned in elementary science “For every action there is an equal and opposite reaction?”
Well, for all of the areas of the country that were seeing double digit increases in property value in a single year (when 2% is more realistic), for all of the lenders who gave out loans to buyers with not-so-great credit, for all of the buyers who overextended themselves in too-large homes and/or with interest only loans, and for owners who cashed out their equity, there will eventually be a correction to offset those mistakes.
So to answer your questions:
Will they kick EVERYONE out of their dwellings?
No, the only people who will lose their homes are the ones who can’t pay for it. No one just gets “kicked out.” The house is yours so long as you make payments on schedule
are they going to board up each and every dwelling unit of the homes that are not paid for ?
The homes get foreclosed. They’re taken to auction. If no one buys at auction, the lending bank takes possession and lists the house with a real estate agent just like any other seller.
What will happen to people (simple people, rich people, normal every day people like me) when the housing market crashes?
See first part of my answer. There will be a bit of an economic downtown for awhile, but nothing we can’t live through.
I am not a home owner I live in an apartment, but don’t these apartment properties have to deal with the housing market as well?
Landlords love this kind of thing. When credit is harder to get, people have to rent instead of buy. This is a good time to have rental properties.