How to Solve the Foreclosure Crisis: Helping College Graduates

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I believe this “foreclosure issue” has been years in the making. The problem only surfaced this past year because of the economy. With so many people out of work, or working multiple jobs at minimum wage, it is difficult to pay off any expenses and bills. I have two solutions I want to discuss both short-term and long-term. The short-term solution, I believe can be implemented as soon as possible, which is what homeowners need in this economy to get back on track. I would anticipate the long-term solution to be gradual to help college graduates build up the economy by making investments (such as buying a home). To date, college graduates upon graduation can make approximately $30,000 or less which is not a comparable salary after spending four years in college with mounting student debt. It becomes difficult for the younger generation to make such investments as purchasing a home or buying a car with that salary range. For the short-term solution, the continuation of the first-time homebuyers discount, or tax credit of $8,000 toward the initial down payment or the cost of the home should be supported for a longer period of time. What a gift! We need to do more though. Perhaps, another incentive (gift) would be a reduction in property taxes for a year. This would give the first-time homebuyers a chance to save and use these untapped funds instead to buy furniture, appliances, electronics, carpeting and various other sundry items for their new home. This, in turn, would help stimulate those various industries, which would thus create more jobs for people who are unemployed and again, in turn, would help reduce the amount of foreclosures. People would be working and therefore, would be paying their expenses. In continuing the s... ... middle of paper ... ... well. Therefore, the domino effect continues by hampering these parents (the “Baby Boomers” who have the disposable income) to make real estate investments, purchase cars, and travel because the parents are back in the position of re-supporting their offspring. The Baby Boomers are in better shape than their children which they college educated to be more financially sound than when they began their journey in life decades earlier. As mentioned, this is the long-term solution so that the economy can grow and be boosted so that the continuous circle of life will and could continue and not be stagnated. I am only slightly hopeful that this will be accomplished. I hope I am wrong and both myself and my peers will be gainfully employed at jobs with a decent salary to we can go forward independently and accomplish our dreams as a productive element of the workforce.

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