After the real estate bubble burst in 2008, many families in the US found the cost of running their properties unmanageable.

Between 2006 and 2014, nearly 10 million homeowners in America saw the foreclosure sale of their own homes.

Many had to give up their property to lenders or to short-sell it as quickly as possible.



After the real estate bubble burst in 2008, many families living in the US found that the cost of running their homes was no longer affordable, resulting in many of those people losing their homes.

The widespread consequences were that, between 2006 and 2014, nearly 10 million homeowners in America saw the foreclosure sale of their own homes, which entailed having to give up their property to lenders or selling it as quickly as possible via an emergency sale, according to the Süddeutsche Zeitung.

Livelihoods were threatened and the financial damage was colossal — not to mention the emotional damage suffered by victims of the crisis — a 2014 study shows a correlation between the crisis and an increased suicide rate. But where are the victims of the real estate and financial crisis now?

How victims of the real estate crisis are doing today

"The pain faded over time," explained Carl Richards, one of the many who fell victim to the financial crisis and was forced to sell his home.

Despite being a financial advisor, he also fell prey to the real estate bubble: the Richards family decided to join the same chic lifestyle trend everyone around them seemed to be following: they bought a beautiful Las Vegas property with a palm tree in front of the door —on credit.

The real estate crisis drove many US citizens to financial turmoil. Shutterstock

"It's easy to justify it when everyone else is doing the same thing," Richards said.

Even today, the shock and the sense of having failed, which Richards details in his book on financial planning "Behavior Gap", still resonate deeply. Fortunately, he and his family decided well ahead of many others to short-sell their house, saving them from insolvency.

It took several years for the family to recover from the consequences of the financial crisis and everything it brought with it, and took even longer for them to feel ready to buy a home again but, comparatively, they got off lightly. Today the Richards have largely recovered from the consequences of the financial crisis and fortunately most other US citizens have as well.

Real estate prices in the US have risen again

As well as real estate prices having risen, the American economy is currently showing a positive trend and is at a historic low as regards unemployment, according to the Süddeutsche Zeitung.

That being said, the consequences of the financial crisis are still felt, as shown by the steadily declining rate of homeowners —which only came to a standstill last year.

Overall, the financial crisis has taught people and institutions alike a lesson in being more cautious. After every economic upswing, we know that there will be another downturn at some point.