How to Solve the Foreclosure Crisis - 977 Words

The economic crisis that has occurred in the recent years and that has consistently worsened over past year or so has led to many other problems, one of which is the foreclosure crisis. More and more people are losing their homes due to job loss or simply poor financial choices. The number of unemployed and homeless is increasing at an alarming rate. Many feel like there is nothing that can be done to remedy the situation, especially when the enormous debt that the United States has already accumulated is considered. There is not just one simple step that can be taken to fix this serious problem, but there are a series of things that the government and financial agencies can do to help gradually improve the situation, including more†¦show more content†¦Some people are supporters of the idea that the country’s wealthier people should give of their resources to help bail out those in trouble. This may seem to temporarily help the problems, but overall it will not do an yone any good. It will only teach those who were in trouble to become dependent on others instead of teaching them to stand on their own two feet. The United States was founded on the principles of capitalism and has thrived for hundreds of years. We have only begun to have problems when we started moving away from the ideals of our founding fathers. If capitalism and the â€Å"American Dream† have worked for us for so long, why change it? We are only on a long, winding detour that will eventually lead us back to capitalism anyway, so why not avoid a great deal of grief and go back now? Addressing the way the government runs and our â€Å"founding principles† may seem completely irrelevant to the subject of the foreclosure crisis, but in reality it all ties together. The government runs some of the United States’ largest mortgage lenders, so the way that the government operates in general certainly affects mortgages and foreclosures. It is almost comical to thi nk about how the government is guaranteeing funds to these financial institutions when it is trillions of dollars in debt itself. If our government officials would just acknowledge this and actually do something for the good of the people instead of simply looking out forShow MoreRelatedHow to Solve the Foreclosure Crisis1218 Words   |  5 PagesHow to Solve the Foreclosure Crisis 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 â€Å"American Dream,† and when working class families cannot seem to manage without loss of pride and dignity, then the dreamRead MoreHow to Solve the Foreclosure Crisis1146 Words   |  5 PagesHow to Solve the Foreclosure Crisis An important step in solving the foreclosure crisis is to provide assistance to mortgagees in making the monthly loan payments; this assistance should be in place before the first loan payment is due. One solution in providing assistance, which would not require any additional governmental funds to be spent, would be a mandatory mortgage equity accelerator program for every new loan written. A mortgage equity enhancement program allows a thirty year mortgageRead MoreHow To Solve The Foreclosure Crisis1443 Words   |  6 PagesHOW TO SOLVE THE FORECL0SURE CRISIS 2009 was a record breaking year for foreclosures in the United States. The perfect storm of high unemployment, tightening credit, decreasing real estate values and cataclysmic stock market crash resulted in millions of homeowners defaulting on their mortgages. What are the solutions to this problem? Some would argue that the government should intervene and help homeowners. Those with a more â€Å"free market† or laissez faire approach would contend that the governmentRead MoreHOW TO SOLVE THE FORECLOSURE CRISIS1793 Words   |  8 PagesHOW TO SOLVE THE FORECLOSURE CRISIS What do we think when we hear the word â€Å"foreclosure†? Most people realize that it’s definitely something that is not good, some say that it’s when someone fails to do something, but those people don’t really know the meaning of it. But before I present my idea let’s review the meaning of such process: From the website of InvestorWords.com foreclosure Definition The legal process by which an owners right to a property is terminated, usually dueRead MoreHow to Solve the Foreclosure Crisis2207 Words   |  9 PagesThe foreclosure crisis has become as confounding as the old, neglected house on the corner of your street. With shattered windows and wild lawn, no one knows what to do with it, how to save it or even get rid of it. Public and private institutions have tried this and that to patch the ongoing economic blight: lowered interest rates, credit counseling, foreclosure workshops, short sales and bailouts. Nevertheless, the number of foreclosures has relentlessly continued its climb. This ascent hasRead MoreHow to Solve the Foreclosure Crisis Essay1297 Words   |  6 PagesHow to Solve the Foreclosure Crisis Imagine a young couple was married and bought a house together. They were happy they made an investment together that they would never regret. A few years later, the company the husband worked for suffered critically by the recession and he was one of the hundreds of people who got their job cut. They now have two babies to feed and have to choose between food and the mortgage. They soon began to miss their monthly payments. They waited until things becameRead MoreHow to Solve the Foreclosure Crisis Essay2252 Words   |  10 Pagesdollars funded by investments and home purchases were lost within a few months (Wikipedia.org: United States housing bubble). Millions of home owners were found to be unable to pay their mortgages, leading to hundreds of thousands of foreclosures. These foreclosures not only led to the decrease in value of the foreclosed homes, but also decreased the value of the homes in the neighborhoods, complexes and cul-de-sacs around them (zillow.com). The billion d ollar industry created by the fruitful housingRead MoreHow to Solve the Foreclosure Crisis Essay1250 Words   |  5 Pagesâ€Å"How to Solve the Foreclosure Crisis?† â€Å"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. BureauRead MoreHow to Solve the Foreclosure Crisis Essay1086 Words   |  5 PagesThe solution to the Foreclosure Crisis is the implementation of continual, mandatory education classes that must be attended and passed, or penalties will be applied to the homeowners. A little tough love from the lender and the government is necessary. Just as our parents follow through and continue to teach us throughout our lives, so must the lenders and the government take the time to â€Å"sit† every homeowner down to make them l earn and realize that being a homeowner comes with big responsibilitiesRead MoreHow to Solve The Foreclosure Crisis Essay1273 Words   |  6 Pageshaving to deal with a major foreclosure crisis. According to studies by the Mortgage Bankers Association, one out of every 200 homes will eventually be foreclosed, and 250,000 families enter into foreclosure every three months. Although the worst times are still in our future, with help from the United States government, we as citizens will eventually overcome the horrendous situation of America’s current real estate market. To combat our nation’s foreclosure crisis, I believe it is necessary to