Solving the Foreclosure Crisis

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Throughout history Americans have experienced many different crises. Today, one of several crises that are affecting the United States is the foreclosure crisis. I believe Americans are experiencing the worst foreclosure crisis of all time. The foreclosure crisis has been brought on by numerous factors, such as the state of our economy, job loss, and taxes, not paying mortgages, and lastly, owing the IRS. December 2007 is when Americans started to face some tough times. Many people were losing jobs and being laid off. This caused the unemployment rate to increase. One of the foremost forces that promoted job losses was the private-sector job unemployment. By the end of 2007 the United States unemployment rate hit four point six percent. The unemployment rate as of November 2009 is ten percent.

The foreclosure crisis has been brought on by numerous factors, but the biggest cause is unregulated financial institutions. Many financial institutions too often sway people to take on more financial stress than they can handle or realistically pay for. Many financial institutions express to the buyers that it really isn’t that massive of a deal to sign a thirty-year loan at a certain cost a month with an interest rate that is outrageous. The financial lenders promote advertising that expresses to the buyers that is important to have an extraordinary home, with expensive vehicles. There is nothing immoral about owning a breath-taking home/ homes, and costly vehicles. It becomes a problem when people can’t afford to make the payments. A vast problem with loans today is that most interest rates are extremely elevated. It is hard enough to make the payments towards the loan, if you

are experiencing financial difficulties. Subsequently, the...

... middle of paper ... to curve. When the financial lenders lower rates this would make people’s house payments lower. This would then make it easier for homeowners to make their payments. This would be especially helpful to homeowners. This would positively affect homeowners because many of them are faced with negative equity. If this did ever happen it would give the homeowner great hope knowing that they were making some headway.

I personally believe for this foreclosure crisis to end, it will take time. This I am certain, because so much damage has occurred. The foreclosure crisis is like a epidemic that will take time to correct. Job loss to overseas markets, factories being shut down, and people being laid off has only worsened the situation. In order for this foreclosure crisis to end it is going to take positive changes from our country’s people to make progress.

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