The Mistakes of the Past May Be Returning

Back when 2008’s housing crisis hit, many Americans were losing their homes thanks to banks’ mistakes. The world of mortgages imploded, causing the economy to go down with it. However, private equity firms were able to assist us in certain ways and we were able to heal from some of the damage done. Now in 2016, we see a new wave of mistakes coming. Yet according to a study by The New York Times, this time around it is the private firms who are repeating history.

The study discovered that situations such as missing paperwork and quick foreclosures have the potential to affect the industry and homeowners once again. Because of the crisis, we have begun to rely on these big firms heavily. Some huge names such as Nationstar Mortgage and Lone Star Funds have both made severe errors which caused families to be at risk of foreclosure. As the article states, Nationstar has its hand in many aspects of the industry, possibly causing a conflict of interest. It seems there needs to be some changes in the real estate investment field, otherwise we may find ourselves in a situation that is similar to 8 years prior.  

For more information about this in-depth study, read The New York Times’ article here: https://ow.ly/VAvQ301OlnQ

What do you think about these costly mistakes? Comment below!