Post-Foreclosure Stress Disorder: Barriers Keeping Buyers from Market

Editor’s Note:  In this article, the National Association of Realtors (NAR) admits that one of the challenges people who have faced foreclosure experience is a psychological disorder they refer to as ‘post-foreclosure stress disorder’.  We first wrote about this disorder last year when we discovered readers were suffering from long bouts of  post-traumatic stress disorder from their foreclosure experiences.  At least it’s a start that the NAR admits that foreclosure creates long-lasting psychological changes in future financial decision making.  Unfortunately the NAR doesn’t discuss the disorder in detail or provide reasons why record-numbers of Americans have lost their homes to pretend lenders.

Anyone who has had a bad experience with a loan servicer or lost their home to foreclosure will be very hesitant to purchase a home again- if ever.  The NAR has done very little as an advocate of homeowners, and continues to promote the fallacy that there is a single family housing supply  shortage (except in San Francisco or New York City) in an attempt to direct over-leveraged consumers into inflated mortgages they can’t afford.  The NAR uses tactics like, “interest rates are rising” and “supply is limited” to create artificial demand.  According to the author, the NAR also recommends that credit scores be relaxed so more homeowners can enter the market.  Unfortunately, the NAR propaganda recommendations serve to fuel real estate bubbles instead of market stability.

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By Brianna Gilpin

http://www.dsnews.com/daily-dose/06-09-2017/post-foreclosure-stress-disorder-barriers-keeping-buyers-buying

U.S. homeownership rates have been at a 50-year low despite improving local job markets and historically low mortgage rates. Research commissioned by the National Association of Realtors (NAR) said there are five main barriers preventing a large number of individuals from purchasing a home including post-foreclosure stress disorder, mortgage availability, the growing burden of student loan debt, single-family housing affordability, and single-family housing supply shortages.

9 million homeowners experienced foreclosure and 8.7 million lost their jobs during the 2008 crisis. According to NAR, programs and workshops aimed at those with long-lasting psychological changes in financial decision-making could help those still gun shy about home buying. NAR also recommends restoring lending requirements in order to normalize credit standards for borrowers with good-to-excellent credit scores. Currently, those borrowers are not getting approved for the same rates they were in 2003, despite their credit score.

To households repaying student loan debt, it is extremely difficult to save for a down payment, qualify for a mortgage, and afford a mortgage payment – especially in areas with high rent and home prices. NAR found in a survey released last year that student loan debt is delaying purchases from millennials and over half expect to be delayed by at least five years. NAR believes policy changes need to be enacted that address soaring tuition costs and make repayment less burdensome. In regards to low affordability, NAR explained that policies need to be enacted to ensure creditworthy young households and minority groups have the opportunity to own a home.

“Single-family home construction plummeted after the recession and is still failing to keep up with demand as cities see increased migration and population as the result of faster job growth,” said Berkley Hass Real Estate Group Chair Ken Rosen. “The insufficient level of homebuilding has created a cumulative deficit of nearly 3.7 million new homes over the last eight years.”

Due to higher prices and lack of property lots, difficulty finding skilled labor, and higher construction costs, housing starts are not increasing to meet the growing demand.

“Low mortgage rates and a healthy job market for college-educated adults should have translated to more home sales and upward movement in the homeownership rate in recent years,” said NAR Chief Economist Lawrence Yun. “Sadly, this has not been the case. Obtaining a mortgage has been tough for those with good credit, savings for a down payment are instead going towards steeper rents and student loans, and first-time buyers are finding that listings in their price range are severely inadequate.”

About Author: Brianna Gilpin

To read about Post-Traumatic Stress Foreclosure in detail please go here.

24 Responses

  1. I talked to an attorney a month ago who told me that the judges are the gatekeepers for the banks. The banks get them elected and they have an obligation to the banks to protect their interest in all the properties that come through the court system. There is no justice in the “JUST US” system. Besides that, attorneys are officers of the court. I have filed an action to quiet title (2016) based on the statute of limitations being expired, and the party collecting is time barred and the lien and mortgage are void by law. I went in for a default judgement since the defendant never filed an answer and only did so 14 months later (yesterday) and the judge contacts a law firm and the same day they file an answer as a intervenor. I filed a motion to remove them from the suit as they are not the party that I sued and the judge ruled to leave them in my case even though they didn’t prove standing. The judge even ruled that there are 3 “ROGUE” assignments filed in the county land records and one of them back dated 10 years! The law is on my side and STILL the judge rules every hearing in their favor. So its a waste of my time and money so far. Its just a dog and pony show and the actors are just terrible actors. They pretend to help you but they are on the side of the banks. SO much corruption in the court systems. I will never pay another dime to them. The bank ponzi schemes continue and people pulling them have no accountability whatsoever! Its a racket. Always know that politicians mean the opposite of what they say. They are out for themselves, not for the people they claim to serve. You can only rely on yourself!

  2. FSD is real, caused by their usury….!

  3. Can you take my case Dave!

  4. How to stay if it sold Bruce Paller doesn’t seem as effective where I will find the lawyer! Should I fight by myself!
    Thank you Dave!

  5. You have to fight the eviction,appeal the modification or file BK,it sounds like they already sold it?If so it will be hard if not impossible to get the house back if you leave.

    You can still sue.WF they are bad people up in the senior spots.

  6. Thank you Dave someone listening that Lawyer Bruce Paller wasted my time! I was told by the librarian of the court the Sherrif should come soon by this week end to tape the Eviction! I have no appetite for pity! But I’m eager to sue the bank Wells Fargo the ditch me w modification

  7. Kern County 714-813-7284 Nadia Nasrawi

  8. Each case is not different. No one has alleged the connection

  9. I dont buy foreclosure house! never! Feel like swallowing people blood! My house foreclosed cheating bad faith I want back WF toward the end process of modification gave my loan to BSI! BSI never answered my phone! I used to have 3-4 real estate even when I did not have a job I took care of all the loan in decent way! Sold one exchange one! Now my house in Bakersfield our baby I am making income how the bank WF driffted ME! 2801 Hawthorne Ave Bakersfield, CA 93305. The prepaid legal shield Parker Stanbery referred me to Mr Bruce Paller in Ventura 2 hrs away of me! from May 11 till June 12 been sending what he herd asked him to call you, he gave my paper back the one I don’t need and original one he is.like finally today 6/13 he promised to call you! I still like YoYo! The Sherrif to be expected any time to stick the Eviction

  10. Nadia you must know one thing and that is the only person who can take care of YOUR case is YOU,this is not for the faint at heart,you will be dealing with heavy stuff,it will change who you are and what you believe,and who you believe in.
    There is a ton of info online and only a small percentage is valid,and every case is different,so don’t waist more time,only you can decide the best route for you.If it real close and you have never filed a lawsuit then do it,you will need a restraining order,if super close file Bankruptcy case it stops that minute,you can regroup and plan from there.

  11. Have you ever filed a case against the so called lender/servicer?What state are you located?Sounds like you need to get studying and do your homework before anything else,that can happen fast,not overnight but as fast as you can read.

  12. DO NOT BUY FORECLOSED HOMES. LET WE THE PEOPLE MAKE LAWS AS WELL.

  13. I don’t know what to do I’m running out of time

  14. Depending on your state lawyers like him don’t exist,if they tell you do,don’t believe them,they lie,and thats because they have to eat also,they have kids that need things and wives to keep happy,or husbands to send somewhere.Niel Garfield is a fictional character created so we the cheated ones can vent,and get the real story on our loans,so called trusts and basically the semi straight dope.Hes a warrior ,widdle ing away at these mofos,one loan at a time.But really in todays America to talk shit on banks especially when its true,AND your a lawyer is like being kennedy,King,The King ,you know Elvis,do yourself a favor if you have the time still,DIY,its the only way to put up a solid fight and still get out with your dignity,courage,just like the Kings,etc.They all got the memo so when the case finally gets there ,they are like shit another sucker,then after you fire 3rd lawyer and get random calls from lawyers who swear they can get you that justice you shoulda got in the first 2 Nadia V. ?Bank,trust,2005-8,if only you can spare another 5k for starters.Oh do I sound jaded,shoot sorry.

  15. I need someone like Mr. Neil Garfield to take care of my case

  16. I want to cry

  17. The media.

  18. Louise — more than that. Can’t go forward without addressing what really happened. That has not occurred.

  19. I place the blame on our elected officials,our regulatory,our courts,judges,lawyers,escrow,title,NAR,CAR,and any other person or corporate entity that is willing to be bought and paid while others suffer.

  20. The worst crime in my opinion is the fact that our lawmakers,our elected officials,judges,courts,lawyers,title companies,escrow companies,loan brokers,have all decided that they are better than everyone else and that its ok to steal and cheat and rob normal,law abiding American slaves in order to enrich themselves and this will be the downfall of this great nation.
    No wonder their looking at mars.

  21. Nobody wants to buy a house that will go through the same fraudulent, forged procedure and documents. It is dangerous to take out a loan to buy a house. The Great Recession is still here. The fraud and crimes against homeowners the world over has still not be addressed.

  22. Not only is there post-traumatic disorder, but likely the victims cannot ever even qualify to purchase another home for a very long time. . For some, possibly, they are destroyed for the rest of their lives. While the courts remain oblivious, due to the government’s portrayal of irresponsibility, the real fraud still remains hidden. Documents not in order is only the effect – not the cause. I think many people feel that justice is even more important than the house itself. Most just want to be heard. They do not want to be called irresponsible. They want their character back. They want the truth to be told. We are not there yet.

  23. All of our children have suffered this night mare also. They will never trust the banks.

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