You are currently viewing The Trapped Equity Crisis And How It Needs To Be Addressed

Jarred Kessler is the CEO of EasyKnock.

As it pertains to the current market, making the connection between the housing dilemma and greater contributing factors is sometimes not as simple as one may hope. For six years, I have examined and discussed the prevalence and surge in the problem in the housing market, or as I call it, the trapped equity crisis.

In 2008, subprime lending practices led to massive fines, more oversight and changes to lender qualifications. In my opinion, the government was right in the choice to clamp down on subprime mortgages as some lenders took advantage of customers who evidently were not able to pay their loans. Partly through this issue, the Great Recession was born, and the unintended consequence was the trapping of massive equity.

This leads many of those who invest in real estate to feel stuck. As the housing

Keep reading this article on Forbes Small Business.

Leave a Reply