To further prove the profitability I will use math to explain my idea. Say there is a $300,000 home that recently foreclosed. The bank is unable to find a seller by offering it for $200,000. The community decides to buy it from the bank, through mortgage payments for a $200,000 equivalent home for 20 years...
... middle of paper ...
...oosted property values becomes a total increased housing value as $1,000,000. Therefore, the total benefit far outweighs the cost.
With these two provisions America will finally be able to move on and recover from the foreclosure crisis of today. The government needs to invest at the source of the problem, the foreclosures themselves. Offering communities aid to buy up foreclosed properties will increase property values and will be one of the most cost effective ways the government can solve the foreclosure crisis. Second, by stopping further sprawl in rural and semi-suburban populated areas, it will keep property values up. Lastly, getting tough on banks and charging the banks for properties that are stagnant on the market will encourage banks to work with those who are about to foreclose and discourage banks from not mortgaging back to the neighborhoods.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- The foreclosure crisis that the United States faces is not one of a singular mistake or instance, but one of several factors all coming into play in the same period of time. One can not merely solve the foreclosure crisis, and there can be no step-by-step process to “fix” what has been done to the American economy and industry, and ultimately, its citizens. However stabilizing communities ravaged by the current foreclosure crisis will be the most important first step in solving the problem at hand.... [tags: real estate]
1435 words (4.1 pages)
- Foreclosures have been rising in our country since long before the economic downturn we now face. According to Enterprise Community Partners Inc., a non-profit devoted towards creating opportunities for low-income families to achieve homeownership, “The rate of personal bankruptcy in the United States rose by 69 percent from 1990 to 2000. ” Foreclosures are not something that Americans can properly navigate without knowledge. Studies show that it is without this knowledge that many individuals find themselves in dire economic conditions.... [tags: foreclosure, economy, financial]
1232 words (3.5 pages)
- The 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 has threatened the viability of entire neighborhoods and the value of most families’ largest and most important asset.... [tags: Foreclosures]
2195 words (6.3 pages)
- How to solve the foreclosure crisis. Not an easy question to answer, nor is there a simple solution. I am among many skeptics of the notion that we can truly “solve” this crisis without addressing several systemic issues of the housing market. There is not a single solution to the crisis, but a myriad of different approaches that can collectively remediate the housing market. First, a few short-term fixes need to be implemented urgently in order to prevent the crisis from getting worse. Of priority is stemming the frequency of the foreclosures in the current market.... [tags: Foreclosures, ]
1123 words (3.2 pages)
- Currently the FDIC has estimated that 5% of homes in America are currently in foreclosure. Providing a solution to this economic catastrophe is complex and will be dependent upon many solutions working together, with each other. It is unfortunate that so many homes are in foreclosure, but we are very fortunate to have a government who has been so generous to bail out banks in their time of need, and help families stay in their homes by modifying their mortgages. The Obama Administration has begun the Home Affordable Modification Program (HAMP), which provides counselors and loan modifications to homeowners who desire to modify their mortgages and remain in their primary residence.... [tags: Foreclosures, HAMP, ]
1087 words (3.1 pages)
- Currently, the United States of America is undergoing the worst housing crisis since the Great Depression which has resulted from the economic recession we are facing. Millions of home owners are in jeopardy, tens of thousands have already lost their homes. The problem that has arisen is very clear but there is no easy solution. Based on what I’ve seen and what I’ve learned I have come up with a number of potential solutions to the mortgage foreclosure crisis. To begin with, we must establish a bank moratorium, have the banks cover the financial basis during the moratorium, have them give back home equity, waive certain refinancing fees, extend first time buyer incentives, and to provide mor... [tags: Foreclosures, ]
1133 words (3.2 pages)
- For many Americans, the foreclosure crisis was a news story on TV. For others, the crisis was a national problem to be pondered “in theory.” In my case, however, the foreclosure crisis was personal and real. In 2003, in the midst of closing my failing African American bookstore in Denver, I defaulted on my home mortgage – finding myself the target of a foreclosure process, but also of predatory lenders and investors prowling my inner-city, gentrifying neighborhood. I avoided foreclosure by agreeing to a modification plan with my bank.... [tags: Foreclosures,]
2068 words (5.9 pages)
- The foreclosure crisis is a complex problem, with no simple solution. Several factors need to be addressed in order to turn the foreclosure crisis around. The solution to solving and preventing further crises is a multistep approach that will take time. By setting up some safe guards we can help stabilize the economy and prevent future economic and housing market downfall re-occurrences. First, there needs to be more emphasis on creating jobs and bringing jobs back to the US from abroad. There need to be tax breaks for companies that stay in the US and more taxes placed on companies that choose to go abroad.... [tags: Foreclosures, ]
1138 words (3.3 pages)
- In the last year the foreclosure has sky-rocketed to heights beyond imaginable and without the help of government officials and banks the situation may never be under control. The method in which one should approach the crisis is by the use of subsidizing the foreclosed properties and turning them into a rental issued and government owned property. First, in the most primary stage of action the U.S. Department of Housing and Urban Development (HUD) should take over all of the foreclosed properties from the first of January 2008 until the first of January 2010.... [tags: Foreclosures, ]
1039 words (3 pages)
- I have two ways that we, as citizens of this beautiful country, can help to solve the foreclosure crisis that faces us in these hard times we are experiencing. One has to deal with the foreclosure of businesses and the other deals with home foreclosures. The majority of us are affected by both of these types of foreclosure, which is why I tried to come up with a solution for each. As we know, foreclosure is not just one simple subject that we can get rid of very quickly. It is complex, and will take much time to finally eliminate this issue.... [tags: Economics]
925 words (2.6 pages)