The Housing Bubble, Bankruptcy, and Foreclosure

Millions of people in the United States are facing the real possibility of losing their homes in the wake of the greatest banking crisis since the Great Depression. The economic recession, in part caused by the popularity of sub-prime mortgage loans, has left many Americans unable to make payments on those loans. In response to the lack of payments, banks have repossessed the homes of thousands of people.

Many of the problems that led to this situation were caused by a “bubble” that developed in the United States housing market. New laws allowed banks to offer high interest-rate mortgage loans to people with bad credit, which they began marketing aggressively. Unfortunately, this led many Americans to take out mortgages they could not truly afford.

For a while, property values increased so quickly that people were able to purchase homes, repair them, and sell them at a profit. But eventually property values stopped increasing, causing the entire lending market to fall to its knees. This triggered a domino effect that has led to high unemployment rates and a worsening economy, leaving many people who were given sub-prime loans unable to repay them.

Contact Us

If you or someone you love is struggling with unmanageable debt and facing the possibility of foreclosure, filing for bankruptcy may be one of the most efficient ways for you to take back control of your financial life. To learn more, discuss your case with a compassionate Boston bankruptcy lawyer by contacting the attorneys of Joshua Spirn & Associates today at 800-975-5346.