Mortgage-Crisis Foreclosures Soon to Be Wiped from Credit Reports

New York, NY, July 8, 2016—Between 2006 and 2010, 6.8 million Americans lost their homes to foreclosures or short sales; the peak of that crisis occured seven years ago, which means that many affected individuals are about to see those foreclosures disappear from their credit reports, according to Bloomberg News.

Those newly improved credit scores paired with low interest rates could entice these individuals to start shopping for a home.

“That, combined with sustained gains in employment and bigger increases in pay, could give consumer spending, which accounts for almost 70% of the U.S. economy, an added lift over the next couple of years. The impact, though, is hard to quantify because it’s difficult to estimate how many people will once again be emboldened to borrow after experiencing such a shock,” said Jacob Oubina, a senior U.S. economist at RBC Capital Markets LLC in New York.