According to Bloomberg, Millions of Spenders Are Ready to Come Back From the Mortgage Crisis


Millions of Spenders Are Ready to Come Back From the Mortgage Crisis

I would say possibly able, but not ready or willing…

Millions of Americans lost their homes to foreclosures or short sales during the housing crisis. Fortunately for the economy, time heals most wounds — and credit reports.

The number of people joining the rolls of those knocked from homeownership peaked seven years ago, so those blotches to their histories are starting to roll off the books right about now. The resulting improvement in credit scores means more Americans will find themselves with the ability and means to once again apply for loans, and not just for home purchases.

“Improving credit scores might entice households to start borrowing more in general,” said Ralph McLaughlin, chief economist at real estate search engine Trulia. And what better time than now, when interest rates are so low.

That, combined with sustained gains in employment and bigger increases in pay, could give consumer spending, which accounts for almost 70 percent of the U.S. economy, an added lift over the next couple of years. The impact, though, is hard to quantify because it’s difficult to estimate how many people will once again be emboldened to borrow after experiencing such a shock, said Jacob Oubina, a senior U.S. economist at RBC Capital Markets LLC in New York.

The number of consumers with a new foreclosure added to their credit reports peaked at about 566,000 in the second quarter of 2009, according to data from the Federal Reserve Bank of New York. In the four years through 2010, that group totaled 6.8 million.

Rest here…

Once bitten, twice shy…


3 Responses to “According to Bloomberg, Millions of Spenders Are Ready to Come Back From the Mortgage Crisis”
  1. mike Drouin says:

    If you have gone through the down right frustration , and disappointment of knowing criminal activity was involved , and multiple categories of law were broken in order to STEAL your home , and your not being afforded the protection of the Law or aid from the agencies created for our protection , then you haven’t experienced the reality of what has , and is taking place in the Mortgage Industry . The INTENTIONAL TORT OF CONVERSION , is outright THEFT !!! and when you have a Government system LYING to you about what is taking place , this should be a wakeup call for all of us !!!!

  2. Kathleen Burt says:

    “a slow trickle down: rather than a flood is right. So many people at the younger end of the age group mentioned watched their parents or grandparents struggle to save their homes during the Bust and decided it’s not worth the hassle. And the older ones are thinking money formerly put into taxes, insurance and HOA is better saved for retirement. They see older co-workers or relatives downsized and are realizing they’re next. They survived bankruptcy or foreclosure and the credit rating has improved, but they’re older now, and have different priorities: pay off the student debt and put money away for later.

  3. Charles Fetters says:

    You have no clue about foreclosures. The banks are stealing homes. Nothing has changed, the BIG LIE continues.

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