The Real Estate Market Hit Rock Bottom - 882 Words

When the real estate market hit rock bottom, trust was broken between the lenders and the borrowers. The lenders of financial institutions no longer trust approving loans to less than perfect borrowers, while the borrows no longer trust lenders to give them a home ownership deal that they can not only afford, but won’t devalue their property and leave their homes underwater in the future. The economy is recovering, albeit slowly, yet both lenders and borrowers feel that trust has been broken. How does each side fix the relationship in order to not only help the economic growth of the real estate market, but to help borrowers become homeowners? How can those who were once homeowners that fell victim to the economic downturn find their†¦show more content†¦The rent-to-own option may be an excellent opportunity if a millennial has a steady job and can afford the rental payments on a simple house. This goes back to trust between the lender and the borrower. The majority o f millennials have rental history from living off-campus or renting their first few rental properties from their entry level job, but have put off home ownership due to worrying about student loans or other debt. The rent-to-own option would help with the economic recovery since this group is now transitioning into adulthood. This option would also help many young buyers become homeowners and possibly, second homeowners when they transition into middle- adulthood and senior citizens in a few decades. The â€Å"Boomerang Buyers† have most likely re-established themselves during the economic recovery. Although this group may have credit cards, they may not have a major revolving loan (such as a large line-of-credit or a car loan), which would make it harder for them to be approved for a mortgage. Some of these home owners may have walked away from their home if it were considered â€Å"underwater† and some may even have filed for bankruptcy for a fresh start, so their cr edit scores may be considered â€Å"fair† by industry standards. Although these buyers may have paid their bills on time for the last few years, the industry still looks at their past since it stays on their credit report forShow MoreRelatedThe Las Vegas Real Estate Market Essay971 Words   |  4 PagesI ve been investing in the Las Vegas real estate market for several years and currently own a few rental homes there. This market used to be very good to me. Now, I take a financial loss on every rental property owned in Clark County Nevada. The Las Vegas real estate market has not fared well with the roll of the dice. The only winners in this game of roulette have been the banks. 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