Foreclosure crisis

The foreclosure crisis refers to a period when many homeowners lost their homes because they couldn't keep up with mortgage payments, often due to economic downturns, declining home values, or risky lending practices. When homeowners defaulted, lenders foreclosed on properties—selling them to recover unpaid debts—leading to a surge in foreclosed homes and financial instability in the housing market. This crisis was particularly severe around 2007-2008, contributing to the broader economic recession and highlighting vulnerabilities in lending and housing practices.