How to Solve the Foreclosure Crisis

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“How did we get ourselves into this mess?” This is the question I’m asked by clients of mine who don’t understand what happened to the housing market and want to know how and when we’re going to recover. Most people understand that the real estate market is cyclical. It’s always had its up’s and down’s. Fellow Realtors of mine who have been in the business for thirty plus years have often said “this is worse than they’ve ever seen it”. We often find ourselves in friendly debates of what we think it’s going to take to “fix” things. We can now see pretty clearly as to why we have a foreclosure crisis, but now the question is, how do we solve the foreclosure crisis and hopefully prevent this from happening again? I am 27 years old and I have been working in real estate for the last eight years. I didn’t enter into this business because I had a burning desire to sell real estate. Like most Realtors, I kind of just fell into the business. As of recently, I’ve decided to go back to school and pursue something I truly do desire to do, which is Psych Nursing. With my background in Real Estate I found this essay to be quite appropriate for me. I think before diving into how we can solve the foreclosure crisis, we need to understand how we got into it first. Everyone wants to place the blame on everyone else for why this all happened. I think it’s a combination of factors and I believe everyone has to take some responsibility for their actions. When the market started to pick up in the early 2000’s there were all these new kinds of sub-prime loans that were made available. These were loans that provided “creative” financing to allow almost anyone to be able to buy. They were unconventional loans and many of them didn’t include really an... ... middle of paper ... ...think it’s critical for the people who implement the systems to really look at how things work right now and simplify them a little. I know that’s easier said than done, but coming from someone who actively works in real estate every day, the system as it is now can be extremely challenging. The process in many ways doesn’t make any sense in real world situations and this foreclosure crisis is very real world. It’s ultimately caused our economy to get to where it is, and I truly believe it’s going to take the recovery of the housing market to get our economy back. It’s important to remember that real estate is cyclical. We need to learn from our mistakes and not repeat history. That way, when we have our next down market it doesn’t end up anywhere near where we are today. I hope I’ve given some good insight and possible fixes to our current foreclosure crisis.

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