Solving the Foreclosure Crisis

I have always been taught that education is the key top solving almost any problem. The current foreclosure crisis is not any different. There are many reasons cited as to why this crisis happened. Some reasons are obvious whereas other may require inside knowledge of the actual mortgage approval process of individual banks.

Greed has been cited by many as the most obvious reason. Greed on the part of the banks, realtors, loan officers and yes even homeowners. Homeowners who wanted to get much more house than they could afford just because someone approved them for it. Many mortgages have been so polluted that it is hard to figure out who owns them. I have a friend whose family went into foreclosure and filed bankruptcy. The bankruptcy case had to be put on hold because the mortgage had been sold so many times, no one could figure out who owned it.

A rise in the cost of some everyday items has also contributed to the mortgage crisis. When families have to decide between food and gas for their cars, it causes immediate financial problems. When these basic items are in jeopardy mortgage payments often suffer first. The reality is that no one is going to pay their mortgage if their children are cold and hungry.

The decline in the value of the American dollar has also been mentioned as a reason for the mortgage crisis. Parallels have been cited between what is happening now and what happened prior to the Great Depression. Inflation has robbed too many homeowners (and non-homeowners) of their savings, making the money they do have of little value. Many Americans have had to tap into or deplete their savings to meet everyday expenditures. The government has put many programs into action and most with good intenti...

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...ss likely to flourish if they know someone is watching them.

5. Review any second mortgage requests from homeowners that have been in their homes 20 years or more. This would help protect the elderly.

6. Tax breaks for those that make on time mortgage payment for 12 consecutive months.

These measures would not only protect consumers, but reward fiscal responsibility. By the same token the government should lead by example. It does no good to reward citizens for fiscal responsibility when the government practices the opposite. There are many that are against government intervention and/or control. I am all for it. The government has experts on all aspects of American life. Experts that are paid with taxpayer dollars. I see nothing wrong with putting their expertise to work with the goal of helping American hold on to their part of the American dream.