The nation sits on pins and needles as it awaits a way to move past the coronavirus pandemic that is crippling the economy. While preventative measures have been put in place to try to offset the damage, some are wondering if it's enough to stop a crisis similar to that of 2008.
Fortunately for many home owners and mortgage companies, the two crises are different, especially with the way it is being addressed. Companies are being much more forgiving, mortgage forbearance and eviction halts have helped ease the minds of borrowers and ensures that lenders will still be able to collect the full terms of the loan agreement.
"In the 2008 crisis, the approach was to let people bleed out and apply over and over for mortgage aid," Yahoo Finance reports. "Lender policy then was to advise people they couldn’t apply for aid until they started missing mortgage payments."
The article also pointed out that "home prices were artificially inflated, and loans were made without verifying borrowers’ ability to repay. So bad loans and overpriced homes were all hot potatoes."
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