The Foreclosure Crisis

Foreclosure has become an outbreak affecting the entire United States of America. Realtytrac just reported in the month of April 2011 that one in every 593 housing units received a foreclosure filing. (N1) That statistic is for just one month! Some states such as Arizona, California, Florida, Michigan and Nevada continue to be plagued with an influx of homes falling victim to foreclosure or some other form of default. Each home that is a casualty to a foreclosure, short sale or even bankruptcy was collateral for the lender holding the promissory note. The consequences tend to come at a cost for the lender selling the property but a deal for the buying investor. The costs incurred and the losses experienced by the

For the last several years, the one issue that has been bringing the United States into a state of trouble that it has not been seen since the great depression has been the monstrous Foreclosure problem. Thousands of people have lost their houses. Thousands of people have faced the dangers of debt and chaos. Thousands of people lives have been ruined because of the mistakes that Americans have done in this nation. In order to solve the problem, one must take a look at how it started and how this depression began. Around eight-nine years ago, the market in housing caused many people to chase after it. This caused a mistake of creating a domino affect that has hurt banks from lending out the high amount of money to people and finding out

Foreclosure in America has been a rising and prominent problem recently, and has destroyed many Americans hopes and dreams. Over 2.3 million homes were foreclosed in 2008, and an estimated four million homes will be foreclosed by the end of this year. Despite the efforts of many banks and lending companies, over half of homes will foreclose that have received their help. I believe that we have only started in the right direction in solving the foreclosure crisis. Giving money and lowering mortgage rates will help, but I believe we should find out why Americans are in this situation in the first place. We are being too stereotypical when we think the only reason someone is foreclosing is because of irresponsible payments or buying a home

The main goal the government should be focusing on is to reduce homeowner’s monthly payments, by enticing lenders to make concessions in interest rates that will make their payment affordable. This plan can keep families in their homes and would decrease the number of foreclosures. Providing a financial rescue plan without requiring

The foreclosure crisis that took over the United States a few years ago left many people facing economic hardships. This crisis happened because there was a huge housing bubble that was unsupported by actual home values. The bubble began bursting in spring of 2008 and the crisis culminated in mid-2009. Many lenders went out of business and many home owners began losing their homes. When the government became aware of this problem and began to implement new programs, it was already too late for many homeowners. Those homeowners are not at a point where they might be considering buying a new home. The housing crisis has created new rules, regulations governing the mortgage industry, and has also created a new agency dedicated to consumer protection. This consumer protection agency is called the Consumer Finance Protection Bureau. These dramatic changes have helped to create more responsible lending. The improving market conditions such as low housing costs and competitive interest rates are allowing those affected by a foreclosure to become homeowners again. Prospective buyers have a multitude of programs available to them, so even those with less than clean slate have several options.

Too many Americans have fallen victim to the crisis that has become the norm for our citizens these days. Lenders no longer want to work with individuals who have gone through the foreclosure process and for many it is not only their homes they lose. Some have lost their jobs and/or families, others fall into a deep depression and worst of all some have taken their own lives.

Providing jobs for unemployed Americans is the key to solving the foreclosure problem. Those who recently lost their jobs will be able to stay current on their mortgages and avoid eviction and foreclosure. Those who have already been foreclosed on will be able to save up for a down-payment and then buy a vacant foreclosure to get back on their feet. The overall economic benefit will

The foreclosure crisis has hit America exceptionally hard these past few years especially in California where the housing market is at its worst. California is also the worst because it is home to a lot of the most expensive properties. People are walking away from their homes because they cannot afford the mortgages or loans that they took out on their homes. The lenders are also to blame for this because they did not thoroughly look at them borrower’s credit and income to ensure that they would be able to pay it back. In some cases they would lend money even if the borrower had terrible credit. This has caused corporations like, Country Wide Home Loans, to be bought by other companies. A rather simple solution to this would be to

In 2007, there were over 1.28 million foreclosure filings. The number of foreclosure filings remained above historical national averages for eight years, growing every year until 2010, when levels capped at 2.87 million. According to RealtyTrac’s 2014 Year-End U.S. Foreclosure Market Report, national foreclosure filings--including bank repossessions, default notices, and scheduled auctions--saw an 18 percent decrease from 2013 to 2014, but still had not reached pre-recession levels. In 2015, nearly 700,000 of boomerang buyers will be eligible for new homes, according to TransUnion. Over the next five years, 2.2 million borrowers will again be eligible for mortgage credit as their seasoning periods expire.

Solutions to alleviate the impacts of the foreclosure crisis are absolutely central to the health of our financial systems and the country’s economic stability. The foreclosure crisis is nowhere near an end as mortgages with “teaser rates” are expected to default in catastrophic numbers. The goal of foreclosure solutions must be to keep people in their homes with affordable monthly payments, while still leaving cash in their pockets to contribute to our heavily relied upon consumer based economy. Solutions do not lie in forgiving mortgage loans and billion dollar bank handouts, as this only sets a bad precedent for contract law and regulation standards by condoning financially reckless behavior. We must work with people directly and mortgage modifications must be dealt with on an individual basis.

“Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000…”

There are many reasons a person can end up in foreclosure. Many people were victims of predatory lenders, whom they trusted to have their best interests at heart. These lenders misled homebuyers and helped them achieve loans for purchases that were beyond their budget.

In the summer of 2008, my parents bought a condominium that had gone into foreclosure. Our goal was to “flip” the newly-acquired asset and make a profit. Since “flipping” houses was only a part-time job for my parents, I decided to lend a helping hand. I dragged trash out, demolished a ragged couch, and painted the walls. We transformed the property from a dirty dump to a highly-desired home that received multiple offers and was sold in two weeks. The previous homeowner had neglected numerous court warnings and finally had to be removed by police. Throughout the renovation process, I became increasingly interested in the United States foreclosure crisis and began pondering possible solutions.

The foreclosure crisis is the second major financial dilemma of the twenty-first century. To solve this, the roots of the problem need to be dug up and exposed followed by replanting with an appropriately improved regulatory system to help build stronger roots for the future. It seems that the free market system can't be free anymore given its intertwining roots extend way beyond domestic to international financial systems. There are two fundamental causes to the latest credit crisis: 1) poor quality securitized mortgages and 2) insufficient underwriting for credit poor borrowers. Secondary (downstream) problems making the financial crisis more complex include underemployment and business failures. Many banks,

Seeing other people reactions towards foreclosure helps me to develop a meaningful value of life and how to appreciate it everyday of my life. As I see what is going on around me I came up with three plans that can be executed to help all people who are dealing with foreclosure issues. This can become a major factor for the economy. One is called Own A Home , Financially Fit, and Bills To Kill. These are guaranteed plans that will help any individual that feels that they are not financially secured to become a homeowner. The Own A Home program is designed for aspiring homeowner in which they