How to Solve the Foreclosure Crisis in America

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The foreclosure crisis in America can only be resolved by every American citizen working together to build a stronger America by changing the way we make decisions for expenditures in our lives. We must stop overextending ourselves beyond our economic means. The foreclosure crisis of America has been caused by Americans borrowing money to purchase a home that they cannot afford. Lending agencies have allowed Americans to borrow more money to buy a home than they can afford. Each lending agency seemingly used logical reasoning that if they did not lend the funds to the homeowners, another agency would. The foreclosure crisis was caused by homeowners, businesses, banks, and even the government. The economic recovery depends on not only solving the foreclosure crisis in America, but also the crisis is dependent on ending the war in Afghanistan, finding a more energy efficient alternative for fuel, guarding our borders and protecting our homeland and making it possible to end government housing and food stamps as a way of living.

In order to solve the foreclosure crisis in America, the American public has to begin thinking differently and training themselves to live within their means. Each family needs to create a budget based off of actual income deducting expenses and managing any overages or shortages carefully. It is important to consider paying the mortgage first and then pay any other secured loans such as a car loan next followed by the payment of utilities. Grocery items and fuel for vehicles should be considered next. Payments on unsecured loans should then be considered. Entertainment and vacations should be the last expenditures listed on a budget. Tracking income and expenditures on a regular basis leads t...

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...uce our debt significantly in a short amount of time and place us in the best financial position for the people of America.

The foreclosure crisis will not be solved over night. It is encouraging to hear the announcements from Citibank and Wells Fargo that they will repay the bailout money in 2010. While this is great news, it will still take much more than that to solve the foreclosure crisis of America. It is important for all government agencies at all levels to cut expenditures. This will free up cash and make it possible to repay outstanding debt at a faster rate. The ideas mentioned in the previous paragraph may seem somewhat Utopian, but they are necessary in the future of America. We the people of the United States of America must work together as responsible individuals who co-exist as a whole to solve the foreclosure crisis of this great country.

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