Brick-by-Brick: A Nonprofit Funded by the Government to Decrease Foreclosures

Since the Great Depression, our economy has not seen such devastating downturns. As a result, many of us have lost our jobs and subsequently, our homes. The current foreclosure crisis is affecting 1 out of every 5 Americans, Jonathan Lain (How to Solve the Foreclosure Crisis). So now the focus is on finding ways to solve the growing epidemic of foreclosures. I propose that the government fund a non-profit organization, whose mission is to reduce the number of foreclosures among the American people. Furthermore, although the initial funding would come from the government, as a non-profit, the agency would be able to obtain grants and hold fundraising events in support of their cause. The non-profit organization titled, Brick-by-Brick, Inc. (B-b-B) would ensure all homeowners have mortgage insurance, educate potential homeowners via workshops; housing, and provide financial assistance.

We have insurance for the actual home, yet none exists for the most important part of keeping one of our most valuable possessions: the monthly payment. I firmly believe that everyone should be required to purchase mortgage insurance when he/she buys a home. The premium would be included in the monthly payment. For instance, twenty (20%) percent of the monies would go toward the loan, and then ten percent (10%) of the total loan would be contributed to insurance. Then, if the mortgage holder loses income, the mortgage would be paid for one year or until the individual sought employment or reliable income. During the period of unemployment or lack of income, the holder can also apply for a $5,000 grant to start a new business (monies granted must accompany a business plan and are subject to approval). After the one-year period, the t...

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...rincipal (the amount you borrowed), but also interest, taxes and insurance.

“Unless Washington acts boldly, mortgage delinquencies and foreclosures are sure to keep rising”, Jonathan Lain (How to Solve the Foreclosure Crisis). My solution is tied to a non-profit because, in my opinion, when there’s one person in charge, along with check systems in place, concrete steps are taken to complete the mission. Furthermore, I suggested that Brick-by-Brick tackle the problem, yet be funded by the government. Since the government will fund this foreclosure program, they can check on B-b-B’s progress on a monthly basis. In conclusion, having a non-profit organization become responsible for the foreclosure crisis would help to educate, support and inspire fellow Americans to truly comprehend the importance of credit, money management and the actual mortgage payment.