Creating incentives will allow the housing market to recover. If the current tax credit for first time buyers was extended to all persons, then more people will be inclined to purchase a property such as a second home or vacation home. The incentive of the tax credit will allow more people to purchase and improve some of these foreclosed homes. This tax credit should not only be extended to all home buyers, but the time limit should also be extended. If the tax credit was extended for a few more years, then buyers will have more time to make the decision to purchase a home.
To sell a house, there must be an able buyer. American's should not buy a house without the prospect of a future of steady income. Therefore, the government must allow the industrial and business sectors to thrive. By reducing corporate taxes and providing incentives for foreign companies to set up shop in America, this can be done. With more job opportunities on the horizon, Americans will feel more confident that they can afford a home.
To sum it all up, what we need to get out of this foreclosure crisis is public awareness and incentives to encourage smart home buying. We can raise public awareness on how to make and educated decision when buy a home by seating guild lines. The public could uses to make smart choices in finding a price range that is adequately affordable for them. The government can give incentives by giving tax breaks for Americans who used these flyers and made smart home buying decisions. Combined these efforts could greatly reduce the number of foreclosures and bank owned homes in this country.
When the housing market crashed subsequently the stock market crashed soon after it. As a result of both the real-estate and the stock market crash the banks opted out to tighten up their belts by increasing the criteria to apply for credit and loans. For most Americans who have or had middle class to poor income status it is almost if not impossible to apply for and receive credit now from a reputable bank institution. The foreclosure rate is exceptionally important to me because my family and I were considering buying a home in a year and we almost considered purchasing a house on the flex or adjustable rate. The thought of the possibilities of losing a house would devastate us because we have a young child and my husband and I just started our lives together.
We as a nation must find an alternative to home foreclosure that offers hope for homeowners who feel it is impossible to regain control over their mortgage payments. Being from an area of the country hit very hard by the automobile industry’s downfall I know many people who are in need of immediate help, as they are in the process of having their mortgages foreclosed. Several homeowners took advantage of the easy to obtain credit experienced in America during the late 1990s and early 2000s, and now find themselves “buried in their mortgage”. They borrowed amounts above their home’s value, and now that these values have dropped tremendously so they cannot even come close to selling their homes for what they owe. Lending companies are partly responsible for the troubled real estate market we are now experiencing, as they should have never allowed anyone to borrow more than 90% of a homes value.
If we were able to take the mortgage out of the picture and make homes rent able and one day own able to the people that stay throughout the long term renting of the homes. This is a great way even for the government to hold property, but not forever. For the government to turn over the homes really give incentives for people to stay in the home and to continue to pay the rent for the home until the rent accumulate to the payoff of the purchase price. This way the government will have to market power to jump start the financial market and get everyone spending and investing for a better future. In the end, everyone wins and money will not be a issue in this foreclosure crisis.
While the stimulus packages for first time homeowners is good, they may cause some people to go ahead and get a loan for a house that they will not be able to afford. If people really want to get into a home they will find a way to get there. Changing jobs, or working hard in a job to get a promotion is good ways to afford the costs of homeownership. We know that the government is working out of good intentions to help improve the peoples lives, and the government should continue to do so, only in the appropriate means however.
Solving the foreclosure crisis is a vital step toward the country’s economic recovery. The sooner America can resolve this crisis, the more rapidly banks will recover financially, home values will begin to rise once more and American citizens will return to work. The purpose of this essay is to provide a viable solution to the foreclosure pandemic. This proposal will benefit the homeowners, taxpayers, businesses, and the financial institutions in America. It will not benefit every household experiencing a financial hardship; however it will enable numerous American families to keep their homes.
Home foreclosures have been a hot topic in recent months as the economy has been in a serious downfall with a very slow recovery process. There are many different philosophies and many people truly feel that we can recover from this. We can alter the foreclosure status by giving serious consideration to the economic times and the types of mortgages that are available. Buyers must become more educated on the additional costs when getting a mortgage such as taxes, insurance, etc. The government has to take steps in regulating these types of entities and not be looked upon as the factor of salvation in saving the banks and mortgage industry.
Today is a struggling time for our great nation. A recession has haunted the market for the past few years, with businesses failing, and unemployment rising, houses began to fall into foreclosure in the masses. We face dark times in our nation when a man who wants to work hard and provide a good life to his family. I've thought about how to fix the housing market long before we even fell into this recession. As a Young man in High School I remember having great intellectual conversations with my grandfather and my mother about the economy, the housing market, and as of lately the recession.