Many Illinois residents remember the big housing bubble of 2007 that resulted in a great many Americans losing their homes. In order to help people avoid the foreclosure process, lenders changed their habits and only gave loans to those individuals who could really afford them. Well, a decade later, lenders are changing their habits again. Could doing so lead to another foreclosure crisis?
Banks all across the country have started offering loans to low-income, high-risk individuals. They are again offering zero or low down payment options, down payment assistance and help with closing costs. There is a catch, though — something many will miss if they fail to read their contracts in full. Any assistance offered by the bank could be considered taxable income, so is there really any savings there?
Home ownership is a desirable goal. Unfortunately, due to a number of issues, many Illinois residents are unable to save the money necessary to make it a reality. The programs now being offered by banks sound great, but they may cause more harm than good. Some believe that the housing bubble is doomed to repeat itself if banks and borrowers are not careful.
Illinois residents who are on the verge of losing their homes to foreclosure, due to having mortgages that are unaffordable or any other reason, may be able to stop the process and save their homes. A bankruptcy filing is one way to do this. Of course, there may be other legal options at one’s disposal. An experienced attorney can review one’s financial situation and assist in finding the best solution.
Source: Forbes, “Are We Headed For Another Foreclosure Crisis?“, Jorge Newbery, Dec. 8, 2017