Innovative Ideas and Solutions to Solving the Foreclosure Crisis

During the last years the United States has been suffering in the economy. We have experience many downfalls in the market that are affecting the homeowners today. We need to find alternatives and innovative ideas to solve the foreclosure crisis. As a homeowner, I believe we can find solutions to help the consumers who are struggling because the economy is struggling.

We need to educate consumers when buying homes and explain to them the different loans available before they get into debt. The banks today need to be force to establish a true lending disclosure where a person who is applying for the loan understands all the terms and conditions. Many banks in today’s market are not held accountable for misleading their customers. They need to penalize them when they take advantage of people who cannot afford a high interest loan or a balloon loan. If the consumer understands ahead of time the terms and conditions, they would probably not go into a loan that they would not able to afford.

Incentives should be given to the bank after a period of time where they would be able to get a bonus is a person qualifies for the loan based on their income and if they keep making payments on their loan. This incentive would probably encourage banks to work with their customers and offer them a more competitive loan. The banks should offer a standard interest based on income and credit score. This standard rate should be equal across the United States. If the person knows ahead of time what is expected based on credit scores, salary and debt, then they will probably make better decision when buying a home. If a scale is made similar to the scale used to determine eligibility for food stamps and Medicaid, people would have a b...

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...ant to forgive the additional charges made to the loan. If the customers takes advantage and does not pay for the mortgage then the bank can offer to take the home bank and rent for an amount they can afford based on a standardize formula used across the board for everyone. This way they would not be able to loose all the money and after a year they can offer to regain back their home if they paid within the 12 month period on time. This opportunity will give the customer the opportunity to make better decisions and would not be homeless. I believe we have to educate our society more in how to buy and take loans for homes to avoid the foreclosure. Most people get a driver’s license and they understand what is needed to get one but when they are buying a home they just sign and have no clue about what they are doing. Let’s educate, to gain back our society.