A Practical Solution to the Foreclosure Crisis

The United States’ foreclosure and housing market problems have been well-documented in recent years. This issue has only been heightened by the 2009 economic downturn. Can the sky-rocketing foreclosure market truly be blamed on the recession, however? Can the issue be pinned down on the masses of people who have lost their occupations? Surely many of the cases can be traced back to these harsh conditions, but many more, most likely, can be attributed to something else. Foreclosures are not a new phenomenon and have been a part of American society for years. So, in order to determine a plan for how best to reduce the number of American families losing their homes, it seems best to look backwards rather than simply at the present.

The foreclosure crisis in our country has implemented a domino effect that may take years before we note any positive changes. As the country begins to heal, an effective process and/or program must be implemented that will reduce or eliminate foreclosures. It is important to remember that purchasing and maintaining a home is a part of the “American Dream,” and when working class families cannot seem to manage without loss of pride and dignity, then the dream begins to fade. The hopelessness and lack of self worth takes a giant step forward and brings with it anger and frustration which only damages families.

Our nation is indeed in a crisis in regards to foreclosures. I believe the approach to take to solution would be to thoroughly examine how the crisis occurred and resolve that situation. However, that would be a short term solution. I recommend that we also consider how to prevent the situation from occurring again, thus presenting a long term solution. Let us look at the components of the current matter at hand by defining what is what.

“How to solve the foreclosure crisis?” This is a very troubling question currently facing our country today. The foreclosure crisis fueled by subprime mortgages, was a ticking time bomb waiting to explode. Many Americans hold large mortgages with adjustable rates that continue to increase. It was only a matter of time before the market would come tumbling down. From 2008 until now the national unemployment rate has risen from 5-6% to about 10.2% (U.S. Bureau of Labor Statistics). With unemployment rates continuing to climb, more and more Americans are stuck in large mortgages with no means to pay them. Many of these debtors are faced with mortgages that are greater than the values of their homes due

Foreclosure, the process of claiming the defaulted property to cover the cost of an unpaid debt, has hit America like a tidal wave. Considered to be a crisis and a major factor in the poor economic situation of today, there is no doubt that the current state of the housing market and the influx in foreclosures across the nation has had a dire impact on the American economy since the beginning of 2007. Strategies, policies, action plans, and all other means of organizing a recovery have been attempted, but to no avail. Not even Congressional legislation was able to revive the stalwart economy (although the legislation was not specifically targeted toward foreclosure practices or policies). The plain and simple truth is that no matter

Banks now offer programs to help homeowners/homebuyers, but many times, these loans are often hard to obtain. The current programs have more stringent requirements that are unreasonable for distressed homeowners. In my opinion, the only way to rectify the foreclosure issue is to make a substantial change in how potential homebuyers and homeowners obtain loans.

Foreclosure is an important issue in the United States and needs to be ended or decreased rapidly as soon as possible for the sake of America’s economy. The foreclosure of homes has decreased the state of the economy, and rendered millions of Americans homeless. There are four key solutions that will stop foreclosures in the United States and able millions of American to keep their homes. The first solution is having banks lower their interest rates for all citizens who are in financial need of an interest rate deduction. The second solution is creating jobs that are able to sustain through an economic crisis. The third solution is for states and towns to conduct public seminars on how to manage and budget ones finances during financially

Foreclosure is a growing national disaster in the United States. Every time you tune in to your local news, there is a new family whose house is being foreclosed. Every time you ride around the neighborhood, there is another house up for sale. There are several solutions to this increasing trend including cutting government spending and cutting funds towards unsuccessful government programs, devising financial plans to assist families by setting up payment plans that they can afford, getting communities more involved, more stimulus packages, raising the taxes of the wealthy to lower rates, and easing the limits on section eight housing.

The “Foreclosure Crisis” cannot be solved it can only be slowed by programs and policies offered as management tools to curtail the volume of home owners going into foreclosure proceedings. This “Foreclosure Crisis” should be addressed from the perspective of both the home buyer/owner and the lender. Both sides of this coin are required to create a balance of suggestions, policies and modifications towards the lending practices of mortgage companies and the reiteration of the home buyer’s positive attitude toward long term investments. Without the initiation of managements tools from the perspective of both groups, the consequences of either sides unchecked actions could result in a massive number of bad loans. The massive number of bad

Due to the recession that is currently taking place in the global arena today, the United States has concurrently become affected by a foreclosure crisis. In order to fix the economy and prevent future recessions, the United States must develop a plan to regulate foreclosures. To decrease the amount of foreclosures the United States has by providing financial support to homeowners. The Obama administration must persuade banks to provide assistance to families that are unable to fully meet their mortgage expectations. This may sound simple enough but foreclosure rates have gone up significantly in 2009. The government must also provide assistance to homeowners. Families have to leave their homes

One way to solve the foreclosure crisis is to actually foreclose on every homeowner’s home loan, including the homeowners in bankruptcy, pre-foreclosure and post-foreclosure. The credit report of these homeowners should read as a recession in 2009 and it should not lower their credit scores. The banks should then match the previous interest rates to the interest rates of today and appraise each home and property at the value that it was assigned by its local tax assessor.

There are a lot of industry experts that have believe that the root of the foreclosure crisis is the mortgage-backed security. Other experts believe that the cause is an abusive mortgage and banking industry taking advantage of Americans. I’m going to offer a possibly unpopular response, as I believe that the root of the crisis is lack of personal responsibility, integrity and, to a lesser extent, knowledge.

In order to solve the foreclosure crisis, first we must identify and examine the reasons why people are going into foreclosure. The unstable economy which has led to the loss of thousands of jobs is the most obvious reason that people are foreclosing their homes. Without a stable and sufficient source of income, it is virtually impossible to pay back mortgage lenders. The first step we should take to solve the foreclosure crises is to create more jobs so that people can pay their mortgages on time. Its easier said than done, but who said it would be easy. The way to create more jobs and a moral society is through free college education. We spend billions of dollars building penitentiaries and fighting wars which to me is a waste of

The government has instituted a variety of programs to help alleviate the crisis. Various tax bills have been passed with an aim of encouraging people to buy houses and also to help the low income renters. In 2007 the government initiated a foreclosure prevention program dubbed FHA secure. The initiative is handled by the Federal Housing Administration and is an insurance program aimed at mortgages taken by those who have good credit

All of a sudden this word “FORECLOSURE” was being talked about by everyone. Every night on the news the reporters would talk about the foreclosure rate, and how many people were losing their homes. The radio stations were advertising seminars for people who were going into foreclosure and needed assistance. The newspaper had several stories