Proposed Solution to the Foreclosure Crisis

1056 Words5 Pages
The economic crisis has become pervasive and no one is immune from its effects. Families are finding themselves in situations that they had only heard of others experiencing and are finding their circumstances spinning out of control and fast. There is an obvious need to assist families with real solutions now and fast. Mortgage companies are not quick to be compassionate or offer practical solutions to those who find themselves living paycheck to paycheck and then not having a paycheck and/or nothing in savings. Or maybe there is an accident, injury, or illness and medical insurance has been exhausted or none at all. Perhaps there is a separation, divorce, or death and no one to care for the children while the other is working. Maybe there is limited income and an unplanned pregnancy. Realistic solutions are required so that problems are solved in the family and not made worse by being required to move and have late fees, higher interest rates, and/or finance charges. This can exacerbate the issue because the move may uproot the family out of the school district. It may limit access to public transportation. It may increase the distance from family members and other support people/resources. Either way, asking a family in financial crisis to move from what they consider home is not the answer. Mortgage companies are quick to contact the lender if a payment is late and the mortgage company keeps an accurate payment history. There are obvious trends to people who may be struggling to make their payment. These trends may include frequently paying late or using the entire grace period regularly. Rather than making a phone call about a late payment, how about a phone call to discuss why the payment is late, help with budgeting, whe... ... middle of paper ... ...their way, which may cost more, to save a penny but may save quite a bit more when they frequent it. This website is http://autos.msn.com/everyday/gasstations.aspx?zip=&src=Netx. The first session would be the comprehensive assessment, the second would be presenting the plan of action to the mortgagee family, the third would include follow up on the action steps and addressing any glitches. A six-month and twelve-month session would be scheduled to follow up. If the mortgagee does not appear willing to receive the help and no action steps have been made by the second session, discontinuation and fee for the services would be considered. I believe that the wisdom from a trained professional, the personal care and interest given to the family, and the short and long term solutions that these resources provide make this a great option to the foreclosure problem.
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