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Solving the Foreclosure Crisis

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First the lenders need to be looked at; they are lending too much money to people who really cannot afford it. Second the borrowers need to be held more responsible for their borrowing. Third the economy needs to be addressed for the people that have lost there job and are now in foreclosure.

Looking at the lenders is a big thing. There is too much credit out there and it is getting people in trouble. Yes, someone may have an amazing credit score, but look at how they got that score. Most it is credit cards they might be making their payments on time now but what about when you add a $1,200.00 a month mortgage to their bills. Not to mention taxes, utilities, insurance, and all their other expenses. Like cars, kids, pets, gas, and leisure. Yes, everyone wants to buy that first home and have something to call their own but is it really in the cards right now? For most it should not be, yet the mortgage companies are more worried about gaining a buck than if that person in ready to buy a home.

One way the lending company’s can help is to make sure that their credit cards are paid off, or with low balance. Doing this can insure that people are not living off credit cards, paying the balance just to run it back up. Second look at all of the dept that someone owes not just want is on the credit report. How many kids to they have, children are expensive and should be considered a dept. Do they have a car not on a car loan but on a buy here pay here basis. Dose the person have any other houses they own already, if they do upkeep is costly. There are many things in life that cost a good deal of money that do not show up on our credit report.

Make the person borrowing the money have at least 15% of the home’s value in a savings ...

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...nies to give out at “there will”, because they are only going to give it out where they can make the most profit. The government should buy the mortgage itself from the mortgage companies. Then they would be able to regain the money in the house payments, not just give it away making the national dept larger. They would also be able to collect the interest on the mortgage and that could be used to fund a program for people in need of a helping hand due to one of life’s hard times.

There are a lot of changes that could be made to help with this problem of foreclosure. But the biggest problem is one that can only be address by the individual, and that is greed. This country has turned on to money hungry sharks and people do not care who they eat to get the money. So the power needs to be taken away from the money sharks and given back to the hard working fish.
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