Slowing The Foreclosure Rate

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Foreclosure is a state that many of the United States’ citizens strive very hard to avoid. Unfortunately, more and more of these citizens are finding themselves in a state of foreclosure. Lost homes, memories, friends, communities, and happiness; these are just a few of the many effects of foreclosure. Families are being uprooted from homes that they have lived in for years. Good citizens who work hard and have always been able to pay their bills are suddenly finding that they no longer have the money. These hardworking American people need help. Today more than ever, an answer must be found. One that will be simple and effective. A solution that benefits both the banks and the people. A solution that begins with regulating the banking industry and reevaluating mortgages.

Deregulation allowed banks to fulfill many Americans’ dream of becoming a homeowner, however that same deregulation is making it necessary to unceremoniously take away that dream. Banks stopped having criteria for home mortgages. It came to the point that anyone living could get a mortgage. The banks wished to insure that they received their money, so the gave adjustable rate mortgages (ARMs). Initial mortgage payments for many homeowners were within their means, however as the rates were adjusted those mortgage payments became harder to pay. The homeowners eventually had to go into foreclosure. This is exactly what is happening. The banks were allowed to regulate the banks. Unfortunately, most of the banks thought about the money not about the people. When the people are at risk it is essential for the government to step in and fix the issue. This has been attempted through bailouts and stimulus packages. None of it is working, Americans continue to go into ...

... middle of paper ... and banks, honest. This plan is one to insure that everyone would get the home they can afford. It may not be a dream house, but it would be a place to call home. The plan also insures that the banks would continue to receive the money they need to survive. There is no way to completely stop foreclosure. However, in itself foreclosure is not a bad thing. Foreclosure remaining as a possibility would deter everyone. Families would be sure to buy the homes they can afford; banks would be sure to lend only to those who can repay. That is exactly what the United States needs. This country does not need a plan that fixes everything for a week, month, or year. This country needs a plan that will fix everything as effectively and as soon as possible, but will also fix it for as long as possible. Every American deserves to feel secure in their home, now and in the future.
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