What is foreclosure? How does foreclosure happen? What is the legal process of foreclosure? Is it inevitable? These are questions that I am sure everyone is asking themselves with this foreclosure crisis at hand. But there is a bigger question on the horizon; can we stop the foreclosure crisis, and who and what holds the key to this problem?
In today’s economy foreclosure seems inevitable. But I heard something yesterday that shocked me, “The recession is over”! And as one with hope and faith for change, I believe it is true. Recent statistics state that due to job downsizing home foreclosures are up to forty-seven percent from March 2007, and up another seven percent from last month alone. At this growing rate home foreclosure will be at approximately eighty-four percent by 2010. These staggering statistics are alarming for homeowners as well as potential home buyers. Now that we know what the problem is, are there any possible solutions? Can foreclosure be stopped or at least halted?
The questions we are trying to solve are how to stop foreclosure and what is the solution; these questions have been rolling around in my mind for a whole week. I puzzled my head, and brainstormed with some of the most intellectual thinkers I know to come up with a feasible answer. Then I realized to solve an almost inevitable event you need a reliable and efficient answer. Now that I know what I need, another problem arises, how do I obtain a solution to it?
The answer did not come easy; to find it I had to find out how the problem began so that when I search my mind over for the solution to the problem it will not reoccur. So, I began my search with the word foreclosure to define what it really is, and what does it mean f...
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... who are almost to the point of foreclosure it was quite difficult to come by, but I did it. The home owner’s nearing foreclosure could have the option to become part of the futuristic program. Homeowner’s have the choice to take a loan from their home owner’s insurance policy. The loan can be made from six to twelve months of the homeowner’s mortgage to help catch up payments. The monies can be repaid into the insurance by continuing to collect the insurance from the homeowner. After the six to twelve month extension has passed the homeowner should be able to pick up payments of the mortgage again.
These solutions are a process, and the time will come for eliminations and clauses. But this is the brighter day everyone was looking for. The answer to the problem of the foreclosure crisis is solved. It is now that we have found the permanent change.
In existence is $150,000, specifically set aside for the purchase of distressed real estate. This essay will outline a detailed strategy ensuring a maximum return in regard to the financial investment made on the home. Including a description of distressed real estate and foreclosure in addition to how utility can play a role in the decision-making process.
For the decades before the current housing crisis, buying homes and loaning money was a simple, but strict, affair and had had two outcomes. Either the borrower could pay back the money owed or they could not pay the money back. If the borrower could pay the money back, they could keep their house or whatever they took out the loan for. If they could not pay the money back, the lenders repossess the things that were not paid for. When this happens with a house, it is called foreclosure.
There is, I believe, no easy way to solve the foreclosure crisis. The reason for this is that the underlying problem is not merely the individual foreclosures. The underlying problem isn’t even all of the foreclosures as a whole which constitute the crisis. No, the real underlying problem is ultimately human greed. Consequently, the way to solve the foreclosure crisis, I believe, is not merely through some kind of “stimulus plan.” Yet, this matter shall be examined more thoroughly later.
In order to accurately solve the problem of the foreclosure crisis the nation is currently in, one must look at the cause of the issue. To determine the cause, the history of foreclosures has to be looked at. The questions, “How long have foreclosures been around? In the past what was the cause of foreclosures? How was the problem fixed before? What are the similarities between now and then?” all need to be answered.
My proposed solution for the foreclosure problem has several parts. They include eliminating and legally banning interest only loans, mandatory loan modifications, government tax incentives to stay in a potentially foreclosed home and consumer education.
The frequency of foreclosure in our nation today is dangerously high. The strain from the recent economic downturn has put many families and individuals in a financial chokehold preventing them from being able to make their monthly mortgage payments. Consequently, many of these people feel they’ve punched a one-way ticket to foreclosure. With all these homes being foreclosed on, we face a very real crisis.
Foreclosure is defined as “The legal process by which an owner's right to a property is terminated, usually due to default” and it “typically involves a forced sale of the property at public auction, with the proceeds being applied to the mortgage debt.” (Foreclosure 1). Ultimately, it begins when the owner of a home is unable to make the required mortgage payments every month, therefore the homeowner falls in to default. The borrower receives a notice of default which warns that legal action will be taken soon. In most cases, one may not know what to do, and the only “solution” available may be to walk away, or let the bank take the home. Foreclosure was at it’s highest during the summer, with “one in every 355 U.S. Housing units” receiving a foreclosure filing in July. Also in July, “For the 31st consecutive month Nevada documented the highest foreclosure rate”. California, Arizona, Florida, and Nevada account for ...
As foreclosure becomes a major problem in America people are looking for a way to save their homes without completely losing everything. Owning a home with a white picket fence is the American dream but in recent years it has become more of a nightmare. One way to fix the foreclosure problem would be to use social security as way to help pay for the debt they have accrued. Social security is set up to help Americans when they retire and also to help them in troubling situations such as, insurance for disability, veterans insurance, food stamps, unemployment insurance, and other forms of welfare. The government could use the social security fund as a way to help people out of debt and help save their homes from foreclosure. A plan that uses social security money to help people out of debt could be set up as a loan with a low interest rate attached. This loan could have a form of collateral attached in order to create a program where people are not just taking money with out responsibility and understand the value the given money carries. In order to determine what amount of money people would receive, a figure could be estimated based on their current jobs and how much they are estimated to receive from social security by the time they reach the age of retirement. This amount of money would equal their amount for their loan to help pay off their debt. Essentially people would be barrowing their social security money but would eventually be paying it back. Ideally when they go to retire they would not have lost any of their social security money. The loans must only be used to pay back debt on ones home and if used on something else, such as car payments, or are not paid back, then the person will receive less money then previou...
In the United States we face many issues such as poverty, death, health, and many others. But the issue that is currently effecting society the most is foreclosure. What is foreclosure? How has it effected society?. The definition of foreclosure is a legal or professional proceeding held by a lien holder which is a court order termination of equitable right of redemption amongst housing properties. Foreclosure has not just effected us financially, but has effected society physically.
As of December 29, 2009, the website Foreclosure.com reported that over 2.2 million homes in the continental USA are in some form of foreclosure, 486,323 are in pre-foreclosure and 465,490 have already been foreclosed. Over seven hundred thousand have tax liens against them and 87, 389 have been sold in Sheriff sales. Along with the homeowners, mortgage companies and banks have suffered tremendous financial loss. However, the homeowners lost so much more; they not only lost the roof over their heads, but memories, their self-esteem and their piece of the American dream.
In the world or real estate transactions, all things considered, short sales are often the most frustrating and aggravating. The reason is that it is not simply a transaction between two parties, the seller and the buyer, but it also one in which the mortgage lien holder gets final approval. Therefore, it often requires a little extra knowledge and skill from the real estate agents involved. Nonetheless, we are sharing a few frequently asked questions about short sales. What is a short sale?
Before we begin to implement any changes that will reverse and/or fix the foreclosure crisis, we need to understand the causes of the crisis. There are direct causes and correlative causes. The most direct causes have been discussed ad nauseum in the media. Some of these direct causes include; high (property) taxes, loss of jobs, resetting adjustable Rate mortgages, loss of credit rating (due to other causes that result in the inability of the borrower to pay bills on time or at all), medical bills (also a leading cause of bankruptcy) and an overall spend-thrift zeitgeist. These direct causes are easy to spot, but I believe that they are a distracting muse for our ire. The real causes for the foreclosure and overall financial crisis have more to do with laissez faire market system in general.
There was an escalation in fear in the years leading up to the Christmas we spent in Indiana. My mom tried her best to shield us from the reality of her marriage, but closed doors can only muffle so much. Instead of driving to a hospital, mom navigated through the snow to the Wal-Mart to buy gauze bandages and a sling. You never forget the feeling of helplessness that burns the pit of your stomach as you watch your mom use a Walmart bathroom to cover her bruising under concealer and hide her swelling arm back inside her coat.
Being able to solve the problem with a feasible solution not only is beneficial to solving the problem but also helps you as an employee taking on more responsibility and can boost your reputation in the workplace.
Foreclosure is an extremely serious topic for so many people. For some, it simply means that there are cheap houses on the marker, for others, it is the end of their lives as they know it. Ultimately, there really isn’t a solution to foreclosure, but there I have formulated a plan to help slow down the process.