The housing market should not be seen as separate from personal and family economics in general. To solve the foreclosure crisis, there should be public as well as nonprofit programs and courses in place to educate people and families such that they are motivated to remain economically sustainable and are skilled and supported in managing debt—and especially so if they are current or prospective homeowners. These courses would begin at the high school level and continue through college and adult school at limited to no cost. Also, there should be community agencies and legal professionals advocating on behalf of current homeowners facing foreclosure of their properties. Finally, there should be resources available through social programs catered towards families who aren’t necessarily living in poverty; but have recently lost their home due to foreclosure, and need some help getting their lives back on track.
FINANCIAL EDUCATION:
Right now the primary “educators” of the financial system are corporations with a vested interest in the ways the public manages money. Every day people go to a bank, credit institution, or other financial corporation because of an existing need or deficit—they need shelter, they need to pay off their debtors, they aren’t making enough money at their current job(s) in order to feed their families. This need is heavily exploited in the form of volatile interest rates, unexplained accounting fees, and loopholes in the legal system allowing financial corporations to be unaccountable for missing money. These companies will only give limited information, unless credit consumers are educated enough and empowered enough to “pick” their policies and procedures, to carefully scrutinize their monthly stat...
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...section 8. Yet, because of their debts these families have very little left to contribute to climbing rental rates. These people are just as in need of affordable housing as families unemployed or underemployed; at least until they manage to get themselves out of the financial hole and have enough to afford housing at the going rate in their area. If part of the federal and/or state budget can be allocated to such programs, the returns in the form of social and economic productivity will be worth the cost. As these families are hardworking American families, they deserve as much support as possible to achieve the American dream.
Such is my threefold proposal; and though I know it is brief and without detail; I hope that it contains valuable points of consideration that can be applied in future government policymaking concerning the current foreclosure crisis.
The last quarter twelve percent (12%) of American homes are in default of their loan, or in foreclosure. Add that to the previous four quarters and that is eight point seven (8.7) million homes in crisis. (Further on known as HIC's) The United States “Bail Out” helped major mortgage corporations, and their chief executive officers (CEO's), but not the families that are in, or were in these HIC's across America.
In essence, the problem leading to the foreclosure crisis is the recent decrease in people’s ability to make their loan payments due to job loss and lower wages brought on by the economy’s weak state. Rather than throw billions of dollars at big banks in the hope that they find ways to help the homeowners’ loans, the government should attack the problem through the individual. Simply, the government aid being spent in the hopes of stimulating the economy should be funneled toward reducing the balance of home loans to make the monthly payments affordable for the owner. By funneling the government aid directly to the American home owner in need, the economy would greatly benefit as homeowners regain their footing with their budget because the economy and foreclosure are directly related. When one hurts, so does the other; when one prospers, the other does as we...
.... This mindset needs to be changed in our society because it is a stressful and deceptive way of life. Without much knowledge the public is preyed upon by those getting rich on the interest paid, along with late fees and other fines.