Also, not everyone understands all of the rules an... ... middle of paper ... ... find a way out. If it means selling their house and finding a cheaper one, our government should help them do that. We say that we are so fortunate but if we were truly to unite and help one another more, this could be true. It is not usually the family’s fault that they have found themselves in foreclosure. It is usually by a technicality, a loss of annual income such as loosing a job, or an accident.
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.
The importance of saving for retirement is all based on how the individual wants their lifestyle to be after their career. The sooner they begin saving and investing their money, the more profound lifestyle they are bound to live. There is a saving plan called the 401(k) that lets employees have a percentage of their net pay withdrawn before taxes. This helps significantly if they are planning to retire earlier on in their lifetime because it can also lower the amount of taxes owed each take which essentially is more money in your pocket every paycheck. America as a whole downplays the significance of saving for retirement until they get of a certain age and they are too drained to get up for work and work a full shift as they would when they were of a younger age.
During the time of this economic crisis, many people are foreclosing on their homes because of inflation in the housing market. It is said by the Mortgage Bankers Association that one out of every 200 Americans will have a foreclosed house. In America, that is a lot of homes that are unoccupied. In this time of crisis, there needs to be a way so that people can stay in their homes for just a little bit longer to conjure up the money to pay off their bills during this recession. Today, millions of Americans are suffering lost jobs and cut hours because of the recession.
That money alone would have helped companies to stay alive. Americans would spend that money and then businesses would have their funds to continue on and because they will have enough money they can hire more people. When they create more jobs this way, it will solve all major problems such as paying off homes, getting health insurance, and paying for other major expenses. It may seem too easy of a solution to just give the people money because they cannot pay their mortgages and essentially cannot pay to live, but in reality that is all that was ever needed.
Raising the minimum wage will really help many families financially (Averback 1). With the family having more income they will have a better household. People don't go to college because they don't have money to pay for it. Raising the minimum wage will gradually help people pay for the college. When you go to college, you will be able to get a better job so that you can make money, that is why people want to go to college.Having extra money around family is always a plus, it will help them with whatever they will need or want.
Knowing what we know now, the main reasons foreclosure happened, is only half the battle. Now we must tackle short term solutions to ease the transition into a better situation and move... ... middle of paper ... ... unsold, offer them as rental properties. Many people can afford this option even when they can’t own, and though some housework will have to be done at the owner’s expense money will at least begin changing hands again and based again on Kensington economic theory, the theory currently used in the US, thus rejuvenating the economy. It’s a win-win. There is no fix all for foreclosure.
Solving the foreclosure crisis America is currently facing would be no easy task. It is common knowledge that even our countries greatest minds cannot come up with a solution. However, I think the problem could be solved through better advertising. The public, mainly those who are still employed and pulling in money, could benefit from knowing that houses currently undergoing foreclosure are up for sale for much lower prices than they would usually go for. Those who are still employed, and who plan to be employed throughout the current recession, would more than likely consider upgrading to a bigger home if they knew that right now is the ideal time for them to buy, before there is another peak in marketing.
We all need someone to say you can’t afford a sixty-thousand home but you can a thirty-thousand. To have sense of security and what you actually can afford at the beginning can help a person know that they are able to bounce back once things get tough. We all need help once or twice in our life. If there is someone who is looking for a home that costs sixty-thousand dollars and they make nineteen-thousand dollars a year and their credit looks good on paper many people would stop there. I feel as though the finance companies should look deeper into the monthly payment to determine what the family or person will be able to afford in the long term.
I would think the bank would incur the cost in an extreme circumstance to avoid bankruptcy and foreclosure. It would be a win-win situation for the homeowner and the bank since they woul... ... middle of paper ... ...ld on the right side of the tracks, it would be worth every penny. I am presently going to college for my second degree in Early Childhood Education. I am paying for it out of my savings. I am cleaning offices, working flea markets and making hand made items for extra income to live on.