Pursuits
Millions of Spenders Are Ready to Come Back From the Mortgage Crisis
- Consumers with new foreclosures reached record in mid-2009
- Takes seven years for that blemish to roll off credit reports
Rows of houses stand in Las Vegas.
Photographer: Jacob Kepler/BloombergThis article is for subscribers only.
Millions of Americans lost their homes to foreclosures or short sales during the housing crisis. Fortunately for the economy, time heals most wounds -- and credit reports.
The number of people joining the rolls of those knocked from homeownership peaked seven years ago, so those blotches to their histories are starting to roll off the books right about now. The resulting improvement in credit scores means more Americans will find themselves with the ability and means to once again apply for loans, and not just for home purchases.