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. They will only waste all of the government money just like they did their own. In order to prevent this money from being squandered, the government must take an active part in where and how this money is to be utilized. There must be some strict guidelines for them to follow and adhere to. We must make sure that this money does not go to CEO fat bank accounts, but is used to solve our housing problems.
We need to educate consumers when buying homes and explain to them the different loans available before they get into debt. The banks today need to be force to establish a true lending disclosure where a person who is applying for the loan understands all the terms and conditions. Many banks in today’s market are not held accountable for misleading their customers. They need to penalize them when they take advantage of people who cannot afford a high interest loan or a balloon loan. If the consumer understands ahead of time the terms and conditions, they would probably not go into a loan that they would not able to afford.
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.
You may end up saving yourself quite a bit of money in your monthly mortgage payment that will be effective immediately. Refinancing your mortgage has never been as easy as it is at this moment. In order to get the best interest rate available, make sure that you do your homework and check out the interest rates offered by several competing lenders, including those that advertise online. In some instances, online lenders can even offer lower rates than those with free standing offices as they do not have to pay an overhead for office maintenance. Be certain to check out not only interest rates but what fees you will be required to pay.
Currently, in order to get out from under a home that one cannot afford, he must attempt to do a modification to make the payments easier to afford. If that still doesn’t help, he needs to attempt a short sale. In order to do a short sale, a buyer makes and offer and the seller submits that offer to the bank; they then can wait up to three months to give their decision. Most primary home buyers are not able to wait that long, only investors with large sums of money that can buy with cash would be willing to wait a period of time, to obtain a low price. Investors should not be enabled to take advantage of this situation right now by going out and paying cash for all these homes from owners in desperate positions.
The first step in solving this crisis is to make sure that future foreclosures are not occurring. While foreclosure will by no means cease to exist, it should be fully the fault of the homeowner entering into the loan, and not the fault of the mortgage lender whose job it is to give out the loan. If a person is going to be unable to pay back a loan, that loan should not be given to that person, and they should be encouraged to find another home they can afford. The subprime mortgage market, through a large boom, got way out of hand. Large amounts of people were u... ... middle of paper ... ... this mess, we must educate our people.
They feel it is unnecessary to pay for services they do not use or to pay for debt that they did ... ... middle of paper ... ...answers “It is truly enough said that a corporation has no conscience; but a corporation of conscience men is a corporation with a conscience” (Thoreau 669). Using this method creates an interaction between the text and the reader and gives the reader no choice but to agree. We know that someone strong is needed to face all of the risks involved with standing up to the government. However, we must decide what exactly we are standing up for. If we should have taxes, and who should pay them needs to be decided among many other things.
Helping needy families maintain their status as homeowners should be second and reducing over-inflated mortgages is the third. Allowing American citizens to remain in their homes will demonstrate human compassion, which is much needed in our crumbling society. As a form of prevention, I would create a new system of purchasing a home loan from a bank. An individual’s credit score would be based upon earned income only. Collateral would not be allowed.
The solving of this foreclosure crisis that is now plaguing our economy and our people involves examining the past, taking important steps in the present, and changing our policies and our thinking for the future. Perhaps the greatest cause of this incredible problem was our nation’s lack of foresight. The country did not dream that the values of houses and properties would decrease so drastically, and thus we treated the buying and selling of houses as something that was almost insured, stable, and guaranteed to continue to rise when it clearly is not. Many consumers were approved for mortgages with minimal proof of ability to pay it back. The government also bailed out failing banks after it became apparent that their current way of lending money was leading to crisis.
Today a lot of people have wants that exceed their budgets,... ... middle of paper ... ...comfortable with who they are and their financial worth. There must be a line drawn between our financial means and our inner struggles to “fit in“with what we believe society should be like. There are several people and organizations out there that are more than willing to help people adjust to the new lifestyles that will need to be pursued in order to restore stability. The foreclosure crisis is a wide-spread problem that cannot be solved swiftly or with one action. I believe the only way to fix the crisis is by everyone taking tentative steps towards a better financial future.