Solving The Foreclosure Crisis: Two Solutions

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It does not take much attention focused at the media to see that our great nation is struggling economically. One of the major contributors to this current economic meltdown is the rapid increase in foreclosures across the country. The country’s immense housing crisis can be addressed by referring to not only the accumulating irresponsibility of the individual American loan borrower, but also the growth of greed at the corporate level which led to the financial market’s negligence. To stop the spread of this issue we should look at closer government watch of the market and specifically focus on consumer education.

The Quagmire

What is foreclosure? Well it is actually a simple concept: foreclosure occurs when people default on their mortgage. Say a person goes into a brokerage firm with intent to buy a home. Unfortunately the person is not capable of paying off the home in one enormous payment so he or she ends up buying a mortgage. A mortgage is payments divided up over a period of time with some interest rate on them. Instead of waiting around and simply collecting interest, the firm passes on the mortgage to an interested bank. Then the bank sells the mortgage to the stock market so investors can have a field day. This quick pass off of such an important and delicate subject leads to a great deal of negligence. It gets even worse when the mortgages are collected in one big money making pile at Wall Street. Then no one pays attention to the possible consequences that can occur. Such consequences include how the original borrower’s income will not be able to keep up with rising prices in the market and the chaos that results when big financial firms loosen money lending requirements for the borrower to expand their market.


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...g made through a prodigious educational foundation. If we want people to cut down on error and learn how to prepare for the future, things like foreclosure will become the easy problems to solve.

This foreclosure mess is a big complication, but nothing that the expansion of the human mind through education and a close observation of the market by the government can’t handle. As a nation we have experienced worse things, this foreclosure issue is another obstacle that can be easily overcome.


“The Subprime Mortgage Crisis Explained” 2008. Web. 10 Nov. 2009. explained.html

Rogers, Eric. “The Foreclosure Problem-Has It Gone Too Far?” 14 Sept. 2009. Web. 11 Nov. 2009.
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