How To Solve The Foreclosure Crisis

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During these times of economic hardship, it should not come as a surprise that many homes in the United States are going through the foreclosure process. People are losing and have lost their jobs at higher rates than ever before (not including the Great Depression period). They feel as if there is no way out of a foreclosure. However, there are some possible ways to solve the foreclosure crisis. One way is for banks to check the total amount of income a person or family interested in purchasing a home receives. From there, the bank can have a meeting with the individual or family and decide what their mortgage should be based on those figures. The amount paid per month or year should be decided at this point as well. If the person or main provider for the family loses their job, then another meeting should be conducted to decide a new amount that will be paid in order to benefit the person or family while they are looking for work. The bank should also provide some information on where the person or family could receive some mortgage assistance while they are unemployed, such as from a non-profit organization created for that purpose. A second way to improve the crisis would be to set a low, adjustable mortgage rate in place for the whole nation. It should not be just for people already going through foreclosures, but also for people in danger of going through one soon or in the future. However, if this suggestion is to work, then some limits need to be set. For example, the federal government needs to put some mandates or controls in place to ensure that banks and other mortgage related companies follow the procedures. If no mandates are set, then even if this solution was made into law, then the banks and companies could ... ... middle of paper ... ...lp they need faster. The added free time could help the federal government deal more with how to solve the foreclosure problem than using the time to actually deal with the issue. They are not given enough time to think of a solution because people want a solution right away. Therefore, attracting people’s attention away from asking the federal government to help them and turning it towards these organizations will ultimately result in an easier way to get assistance/advice and give the federal government the time they need to create the solutions the people want. A foreclosure is a messy situation. Everyone loses money in the process and it is hard to solve the problem once it has begun. Hopefully, by possibly using these and other suggestions, the foreclosure rate will drop and people will be able to realize the American dream of owning their own home again.

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