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Solving The Foreclosure Crisis

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Home foreclosures have been a hot topic in recent months as the economy has been in a serious downfall with a very slow recovery process. There are many different philosophies and many people truly feel that we can recover from this. We can alter the foreclosure status by giving serious consideration to the economic times and the types of mortgages that are available. Buyers must become more educated on the additional costs when getting a mortgage such as taxes, insurance, etc. The government has to take steps in regulating these types of entities and not be looked upon as the factor of salvation in saving the banks and mortgage industry.

The first suggestion to solving the problem of foreclosures would be to lower the mortgage interest to 4% across the board. This would give more people the ability to stay in their homes instead of the adjustable rate mortgage that they are now enduring which ultimately puts them into a situation where they cannot afford their monthly mortgage payments. Banks are greedy and by not giving the homeowner the above chance, they end up taking back a home under foreclosure ruling and in the end, lose out as they do not recoup the value of the home and it puts everyone in a no win situation. Based on mortgage interest rates, many first time home buyers do not realize the impact that the monthly payments will have on their net income. Many times borrowers are not told of all of the other factors that enter into a mortgage payment such as insurance, taxes, etc. Taking of this into consideration would make many realize that the payments would escalate beyond their means. This would also help the borrower when setting up their monthly budget.

Another suggestion would be to encourage cur...

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...wing people to live beyond their means. Our forefathers did not enter into this type of luxury and it is time to go back to some of the tried and true methods of standards of living that people provide for their family but don’t have to live like the “Jones next door,” but live well within their own means. The economy is in a very scary state and its time that we wake up the people in our country and work towards changing the attitudes in needs of luxury and go back to providing the basics. Hopefully there will be a turn around in the economic crisis and people will be given an opportunity to recoup their losses. It is a long hard learning process for many to learn how to budget money and give thought to the future as then more people will be able to provide security in these economic times. There is an old adage that says, “Don’t bite off more than you can chew.”
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