For a number of years the real estate market has been on the increase. Each month or quarter the cost of housing has been steadily on the rise and home buyers have found that purchasing a home in an up economy has given them equity in their homes in a matter of a few short months and years. As the housing prices continued to go up there were rumors and speculations about the real estate bubble bursting and housing prices flattening out or falling as a result. Experts in the market speculated that sooner or later things would change and the real estate market would shift from favoring the seller to favoring the buyer.
Homeownership is within everyones reach, or so it seemed. Banks and lenders artificially inflated home values by extending loans to people that should never have qualified for a loan. People who had no real way of paying for a house were allowed to buy interest only mortgages and refinance them every few months to extend their house payments out further and cash in on the equity that their homes increased by without any thought of the future.
The story of the grasshopper and the ants reminds us that one day the long lazy days of summer will end and it will be time to pay up what is owed. The mortgage lenders did not see the foreshadowing of their foolish practices, neither did the homeowners that took advantage of the loose lending laws and everyone went merrily on their way floating on top of the real estate bubble. But then someone noticed that the sub-prime lenders were losing money on the loans that they extended to people with poor credit and had no real way to repay their mortgages, and a financial crisis swept over the land. Out of fear the banks began foreclosing on loans that had fallen behind and almost overnight the real estate bubble burst.
Home values fell and foreclosures rose in number as people panicked about the state of banks that had extended loans and had no way to cover their losses. America faced a dark time as economic upheaval swept across the country. Now in the months following a federal bailout of the bad debts created by questionable lending practices the country is recovering.
The drop in real estate prices combined with the number of foreclosures is allowing some homebuyers in Oklahoma to pick up homes for sale at bargains that are well below the estimated values of the Oklahoma real estate. Although the crushing economic crisis is not over, there are some people that like the ants worked hard throughout the summer and have gathered the resources to take advantage of the lower pricing of homes for sale and are picking up deals that come their way as banks and mortgages begin to rebuild after the bubble burst.
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