Connect with us

Hi, what are you looking for?

The American Genius Real EstateThe American Genius Real Estate

Homeownership

Reflection: Obama accused of failing to mitigate the housing crash

(HOMEOWNERSHIP NEWS) Although the Obama administration promised an era of change, the lack of response and accountability after the housing bubble burst in 2008 left millions in debt and without homes.

foreclosure obama

Pause for reflection

As we prepare for the inauguration of a new President, it is an understatement to say that the American population is split on quite a few issues. The frustration has led to much reflection on the past years, in order to fully understand where we are as a nation today. However with every new issue that arises, there are more left in the past, some never resolved. An example of this is the detriment of the foreclosure crisis in 2008.

bar
Movies like The Big Short attempted to break down the narrative of this financial disaster, highlighting the fact that many of the key players to blame never saw the inside of a jail cell. Although the Obama administration promised an era of change, the lack of response and accountability left everyone to think that maybe the rich and powerful really can get away with anything.

Brief breakdown

It is estimated that almost 21 million Americans lost properties due to foreclosure or an associated matter when the housing bubble burst. With every new foreclosure sign hammered into the front lawn of our neighbors, people were left to uproot their lives and find a new place to call home.

It may have not been apparent at the time with so many people suffering great losses, but a large percentage of those affected were families of color. They had been the prime targets for subprime loans, and were known to accumulate wealth in their home equity.

The Atlantic ran a searing story entitled “Obama Failed to Mitigate America’s Foreclosure Crisis,” wherin David Dayen explains how this led to a complete “disintegration of wealth” among these people, which seemed to counter the expectations many had for our first black President.

No justice

Though policies were passed to modify mortgages and funds were allocated to apply some relief, no justice was ever served to punish the banks and companies responsible for the crisis in the first place. Foreclosures continued to take place and banks collected every cent of money from homeowners before their inevitable eviction.

Advertisement. Scroll to continue reading.

Even with this blatant example of fraud, President Obama and the government did not choose to prosecute banks or executives.

So what is the take away? How can the American public learn from this for future lending?

Unfortunately, it seems that borrowers will never be on the same level as those they borrow from. If the Obama administration planned to restore faith in our democracy in regards to this crisis, then they clearly failed. The apathetic response has been met with surges of frustration from the American public, who can now be sure that the same rules do not apply to everyone.

Power and money will always win out. Unfortunately the chance to prove that statement wrong was ignored.

#Foreclosure

Written By

Natalie is a Staff Writer at The Real Daily and co-founded an Austin creative magazine called Almost Real Things. When she is not writing, she spends her time making art, teaching painting classes and confusing people. In addition to pursuing a writing career, Natalie plans on getting her MFA to become a Professor of Fine Art.

Advertisement

The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox.

Advertisement

KEEP READING!

Real Estate Marketing

(REAL ESTATE MARKETING) You may be wondering how you can proactively help your clients who might face foreclosure. We have suggestions that may help...

Politics

(POLITICS) Obama has unveiled plans for his presidential library to make its home in his hometown of Chicago, IL. Will Obama's efforts be able...

Homeownership

(HOMEOWNERSHIP) The FBI is cracking down on foreclosure scams that are potentially happening in your backyard.

Homeownership

(HOMEOWNERSHIP NEWS) Although Congress may have not made any firm decisions on extending tax provisions into 2017, homeowners should know if they are still...

The American Genius' real estate section is honest, up to the minute real estate industry news crafted for industry practitioners - we cut through the pay-to-play news fluff to bring you what's happening behind closed doors, what's meaningful to your practice, and what to expect in the future. We're your competitive advantage. The American Genius, LLC Copyright © 2005-2022