Fraud, unqualified buyers, investors, speculators and lenders/agents/appraisers that didn't care - you can move the order around as you like.
Everyone was in a feeding frenzy when it came to real estate.
I hope we learn for history and stop putting ourselves in this situation
After years of rising home prices, low interest rates, favorable terms on loans, and a historically profitable stock market (Dow Jones Average was above 14,000 before the fall of 2007), many families had great amounts of disposable income.
Real Estate was the New Fad!!!
Everyone wanted to have Rental Property or a Larger Home!!!
If you were an investor looking to buy property that would bring a promising rental income, you would first have to know what areas people are moving into.
U.S. Census Bureau News RELEASED: 12:01 A.M. EDT, THURSDAY, MARCH 22, 2007
â€œAmong the 10 counties that added the largest number of residents between 2000 and 2006, three were in Texas (Harris, Tarrant and Collin), three in California (Riverside, Los Angeles and San Bernardino), one in Illinois (Will), and one in Georgia (Gwinnett).â€
The City of Stone Mountain sits on the Gwinnett County line
Thus, Stone Mountain is a pick for those who want to live or work near one the top 10 fastest growing counties.
Stone Mountain does not have a high foreclosure rate because it is a bad place to live. It has a high foreclosure rate because many of the homes were either owned by investors or primary homeowners that bought overpriced homes. When the market made a turn for the worst, investors and primary homeowners found themselves with few options.
Banks do not give concessions to owners of investment property.
Moreover, banks can not work with primary owners if they have had a sharp reduction in their income and can no longer afford their homes. Foreclosure has been the end result.
The Real Estate market will rebound. In a few years, primary homeowners will buy up the foreclosures on the market. Just give it time.
The City of Stone Mountain knows how to survive.
Linear Realty, LLC
Part of the reason which has contributed to the excess inventory of homes which include foreclosures were the lending practices of the past years, purchasers buying homes that did not fit their budgets, and home owners over extending themselves by taking the equity out of their homes to live a better lifestyle than their income dictated. As Michael stated Stone Mountain is not the only community where this has occured.