Solving the Foreclosure Crisis

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A foreclosure is a legal proceeding initiated by a creditor to repossess the collateral for a loan that is in default. Currently in the United States between 2008 and 2009 we are in a period of economic downturn in which many homeowners are defaulting on home loans. Home sales are in decline and the real estate market is crawling. The United States in my opinion is trying to grow jobs so that Americans have enough disposable income to purchase homes. They have also taken corrective action against flaws in the credit industry. I believe that if proven to be successful these actions will make a significant impact but are not quite necessarily enough to keep Americans in there homes. The housing market crisis can easily be solved by big business and corporations entering the housing market. Fortune 500 companies and other large companies can buy up land and build homes for there employees. Or they can buy up pre-existing properties and create a neighborhood for employees. Banks may be more willing to lend money to a large company seeking to buy real estate than an individual. This scenario increases the ability of company staff with low-credit scores to obtain housing. A company also has the option to fund such a venture by issuing more stock to cover costs associated with a real estate investment. The business can benefit by increasing their assets with more owned land and buildings. Employees can benefit by less stress related to housing issues because housing would be provided by employers. In addition less stress to employees equals more productivity within the company. There are many examples of proven successes in which an institution provides housing for its employees. Universities and private schools sometim... ... middle of paper ... ... does carry risk but is a comparatively safe investment over other securities and investment vehicles. A corporation should still find it a worthwhile investment even after performing a cost-benefits analysis. The benefits for providing housing for employees have many advantages for both the real estate market and corporate America. Corporate America benefits from increased productivity through increased employee satisfaction and government incentive packages. The real estate market benefits by having an additional market and the possibility of large amounts of money invested in housing and land. Although this program provides many desirable benefits to those involved the true objective is to keep homeowners with income in their home. And with many corporations pumping money into the real estate market this should increase gross domestic product which in turn

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