How To Solve The Foreclosure Crisis

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The foreclosure crisis in America is growing, and becoming less and less exclusive daily. At first, it applied mainly to lower income individuals and families, or those with subprime loans and other credit entanglements. It stands to reason that those looking to use credit to purchase a home must be mindful of their credit standing, and the direct effect it will have on their interest rates. If they acquire mortgages in this state, and cannot maintain the payments, the obvious result is a financial snare. However, not all of the victims of the 'foreclosure crisis' are those with bad credit, defaulted loans, or the like. Some are more than able to handle mortgage payments, and many are (or in some cases, were) affluent upon entering into such financial agreements. However, because of the simultaneous economic crisis, there are many wealtyh Americans who are ending up in the same neck-level water as the others. Once at this point, it becomes nigh-impossible to either sell, refinance, or borrow your way out of trouble. The numbers are staggering in either category, and despite enormous gaps in economic class, it would seem the crisis knows no demographic. Many Americans own homes worth less than their respective mortgages. In addition to this, it seems that many of the higher-growth regions across the country are having the biggest problems. The previous housing 'boom' is perhaps responsible for much of the current situation; but it was not an inevitable occurence.

The American government, past and present, has made many a promise to clean up the housing market, presumably with the best of intentions. Many Americans are unsatisfied with the progress or lack thereof; but most don't understand the scope of the problem. To fix a proble...

... middle of paper ... you will have a problem that can be likened to a house, whose base is decrepid and deteriorating, with a brand new roof.

When presented with a problem, the scope of resolutions often mirrors the scale of the problem. In this case, the crisis being so grand can only mean that the solutions must be equally grand. Extremes must be equally dire. The many areas of American life, direct and indirect, can only indicate many areas a solution can be applied. There may never be as many answers as problems, but their growth is proportionate. There are also many areas that indirectly affect the foreclosure crisis. The state of the ecomony contributes to the ruin of job markets, which subsequently affects all money and credit-related areas. This is by no means a quick job; it must be done effieciently, diligently, and thoroughly, if there is to be any chance of success.

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