Luckily, we never purchased a home to get caught up in all of th... ... middle of paper ... ...ons. Instead of offering assistance to those in loans bigger than life, they need to pour money into stabilizing home values of others. Without responsible homeowners being taken care of, this nightmare will just continue to play out and replay. If there is no or little punishment for those in the wrong, it can never be made right. You asked for my thoughts on fixing this crisis, well here you go.
My parents told them their savings would not last and they did not want to fall behind on their payments. They also told the mortgage company that my dad was not receiving unemployment and was going through the appeals process. To date he is STILL waiting to hear from the District Courts about his appeal for unemployment. They wanted to refinance the mortgage to lower the payments. Here is the kicker; the mortgage company told my parents they did not make enough money to qualify for a loan to refinance the mortgage!
This organization builds home for needy families. If they practice the utilitarianism theory it could help I determining the families that are in the most need of a new home a little easier. Although all of the families that are signed up to receive a new home are in need of a place to stay some of the present living condition are worse than other. In using the utilitarianism theory to make the decision of which family need is the greatest and which family can wait for their new how. If they practice the virtue theory than the way a family treat the home that they presently live in will play a part in the decision of whether or not to build a home for them.
Allocating funds for the “Making Home Affordable” Refinancing Program to create foreclosure advisors who are college students would not only be inexpensive when it is time to teach and pay them but it would give them some experience in the real world. And homeowners would receive even more support and manpower in their fight to keep their homes from foreclosure.
Competition is the strongest factor between quality and cost. If a new company specializing in helping families afford their rent or mortgage payments develops, they will offer solutions cheaper than the other companies currently in the market. This could also lead to more affordable plans for low-income families because most of the financial plans set in play require over thirty percent ... ... middle of paper ... ...mportant things such as this in order to fund the building of new houses. If enough houses were built to satisfy the demand, the waiting list could cease to exist. Soon as a family was approved for section eight, they would be working towards getting themselves out of debt and getting back on their own two feet.
Numerous banks began to stop caring about people, and more about the highest profit they could earn. They handed out loans to first-time home owners with no credit report or even equity. They took tons of gambles and didn’t consider the consequences for themselves or the buyer. They also allowed people to purchase houses that they couldn’t afford. Many banks ignored pay stubs and tax information.
Community service will instill a new idea to the Americans who are willing to do what they have to in order to save their homes. People want to stay in the homes they have already partially paid for and have begun raising their family or started to design to their likings. Not foreclosing and allowing a community service would be the most ideal for someone in this position. Banks who participate would receive tax reductions for allowing the community service. The Internal Revenue Service will sort the taxes, and the president and congress make rules and regulations.
One example I read of a lending institution’s failure to permanently modify the loan was a monthly mortgage payment going from $2,200 a month, down to $686 a month during the trial period of the modification process. After the trial period was over, and the homeowner had made every trial payment on time, she was still denied a permanent modification and was forced into foreclosure. I believe the HAMP program, despite its wonderful intentions, is failing to reduce the foreclosure rate substantially. This, in my opinion, is due to the reluctance of the lending institutions to lose profits and/or potentially accept a loss on their investment by participating in this program. The HAMP program ult... ... middle of paper ... ...ach loan than they anticipated receiving on the original note.
We lived hard for at least three years until she was done repaying creditors. My mother was paid once a month and her check was already spent before she even got it. She was late on her bills which did nothing to help her credit at all. There could have been other alternatives to save our home, but there were certain barriers that prevented my mother from taking this route. One solution that would have benefited my mother would have been to draw th... ... middle of paper ... ... here if you would like to donate money to those in need of assistance with their mortgage payments.” The donation wouldn’t be mandatory but it does extend the opportunity to help someone in need.
In order to solve the current foreclosure problems that our country face, we must understand that it will involve two solutions. A short term and a long term procedures in order to eradicate this problem. In the short term, we can keep people in their homes by the government working with the banks and loan companies. Not by just giving them tons and tons of money to do whatever they want to do in the form of a unworkable stimulus plan. It does not make any sense for you to just give money to people who are the ones who got us into this mess in the first place.