Solving The Foreclosure Crisis

Good Essays
For many people the “American Dream” is to own a house, one that they can start a family in and get married. In order to own a house there are many obstacles that one has to go through in order to come up with the funds to support their purchase. Most people cannot outright purchase a house without taking out a mortgage. Unfortunately a certain percentage have been affected by the downturn in the economy and lost employment, making it difficult to keep up on the loan payments from month to month which leads them to get foreclosed on.

Once their house becomes foreclosed on, they lose their house and become homeless if they do not find another house or apartment in time. With the economy in a recession this problem is becoming worse with people losing their jobs and having no money. The important thing throughout this foreclosure crisis is to keep people in their homes and not on the streets. This is a very complex issue to find just one solution that fits everyone.

One solution is that in European countries they are doing 50-100 year mortgages which would allow people to have lower monthly payments, but this is not yet a standard practice or popular in the United States.

For people who are losing their house another solution could be taking in an elder to care for, for a fee. Many elders are put in nursing homes because they cannot live by themselves and they have no family to take care of them anymore. The government could set up a system where someone who is in need of financial help, and qualified as a caregiver could take in an elderly person to care for, in return they will receive an amount of money to help with their mortgage and medical and food supply for the elders. In 2009 the costs ranged from $50,594 in Louisian...

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... of residency.

Of Course the people who are taking in the elders would have to have a thorough background check and will have to be informed on any of the elders needs to survive including medication needs and other things. They would also need to possibly go through some basic training possibly twenty hours of standardized training. Even with this training some elders need additional care. Even if they had to have a nurse come to the home once a day it would still be a lot cheaper than a nursing home. Adoption agencies could be sourced to perform checkups and ensure that the environment is safe for them.

This proposal is a win-win situation for both parties. It is also extremely cost effective for Medicare, Freddie Mac, Sally Mae, and private mortgage lenders. Sometimes the best solutions are common sense and this strikes me as one of those situations.
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