Solving The Foreclosure Crisis

One of the largest and deepest recessions since the Great Depression has recently frayed the once strong threads of the American economy. Many fingers have been pointed to the housing market as a culprit in the meltdown of the economic balance. in this country, and one element of that market's crash is the foreclosure crisis. High and adjustable interest rates and risky--even misleading-- lending practices both have attributed to this crisis. Causes aside, the question remains: How do we fix the foreclosure crisis? The simple answer is: Help the very people who are affected by the crisis and deal with the system that caused it to prevent a repeat occurrence. The solution, however, takes more work and thought to plan and execute.

The foreclosure crisis owes much of its grief to interest rates. These rates caused widespread grief because many of them are adjustable--meaning they change and normally increase periodically. Due to these rates, even fiscally responsible homeowners struggle to pay their mortgage; therefore, mortgage companies have a lack of income and layoff employees and even close their doors.Another major issue for some homeowners is that their mortgages are worth more than their homes. The apparent solution in this viscious cycle is to fix the rates and terms of mortgages and a possible plan is to do just that.

The government will hand down a directive that all mortgage companies refinance all mortgages that are in danger of default. The directive will state and define the circumstances involving a default mortgage which could be a range of definitions. These definitions could be a certain interest rate in relation to a certain income or a certain number of missed payments in succession to each other or...

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...s are entitled to. Fair deals and fully disclosed information are a few what homeowners should have at all times during the buying and owning process. Eliminating

misleading deals and practices, supplying the homeowers with resources, and clarifying their rights are all actions the government should take to ensure a crisis like today won't happen again.

This country most likely won't see significant recovery for quite some time as the fury of the Great Depression did not lessen quickly either. However, America seriously needs to start taking action to ensure progress will happen and will be sustained especially with the foreclosure crisis. THese above plans are radical but at the same time hasten the pace of action for recovery. In conclusion, these plans deal with current problems fo the crisis, and the also attempt to ensure this crisis won't occur again.