Are Short Sales and Foreclosures Changing the American Dream About Home Ownership?

House2.jpgThe American dream used to be the ideal that every American sought after. The perfectly manicured lawn on a nice suburban home with a white picket fence. We all thought that we deserved the dream and could attain it if we worked hard enough. Home ownership has long been part of the American dream. The crash of the housing market world wide has changed that dream for Americans. The American Dream as we know it is being redefined for Florida and the rest of the nation. Hundreds of families have lost their home through foreclosure or have been forced to sell them at a loss through short sale. How have foreclosures and short sales affected what the American dream means to families today? Owning a home is not a guarantee for everyone anymore.

In addition to the end of the American dream of owning a home could also mean the end of the 30 year mortgages that allowed home owners to purchase their dream home. The fact is without Fannie Mae and Freddie Mac the 30 year mortgage may go by the wayside, which will leave many potential homeowners with few financing options. What would real estate financing be like without Fannie Mae and Freddie Mac? Will other financiers fill the gap? How would home owners get financing for homes without long term mortgages? As banks juggle foreclosed properties and trying to get even a portion of their money back potential homeowners may be able to buy properties at steep discounts.

Short sales are another way for buyers to get a great deal on properties. Which means that for the time being, the low prices of short sales and foreclosures may allow new buyers to finance their homes over a shorter period of time. But after the sale of foreclosures and short sales dries up, how will buyers finance their dream home? However difficult the problems with the mortgaging companies, there would be consequences for Americans if Fannie and Freddie are shut down. For most borrowers, it would result in higher interest rates and larger required down payments. Americans may need to face the fact that owning a home may no longer be possible for some families.

So, is the idea of home ownership becoming more of a pipe dream and less of the American dream? Foreclosures are changing the face of the American dream all across the nation. If your home and your American dream are at risk in Miami, contact a Miami foreclosure attorney to help you. You may be able to save your home or you may find that a short sale is in your best interest. Only a Miami bankruptcy attorney can help you decide the best option for you and your family.

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