Solving the Foreclosure Crisis

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In America the foreclosure rate is at an all time high. It seems in every neighborhood you visit you see houses going into foreclosure. The American family has been lead to believe that they could buy homes with little or no down payment, and that the banks could continue to offer variable (adjustable) rates of three to four percent. This was madness on the part of lenders to lend to “uneducated consumers” who may not have understood the ramifications of rate increases on their ability to make their monthly mortgage payments. The American dream of owning a home is beginning to elude many individuals, and it is questionable that all Americans should own a home. Many individuals no longer can afford or even want to own a home because of rising homeowner yearly taxes, and interest rates that make paying down the principal of a mortgage almost an impossibility. As a young person, I question whether it would be in my best interest to burden myself with home ownership because of the unstable economy and vanishing job market. I think that it is a good idea for most people to rent a home instead of buying a home. In the past it has been too easy for the American consumer to avoid paying their debts because the “easy out” has been to declare bankruptcy and be completely excused from their debt, and even being able to keep their home in the process. This too was a mistake. If a person is not able to pay what they owe, they should not be able to keep their home and continue to elude their creditors. The government needs to step in and help people stay in their homes by dramatically lowering mortgage rates or following a rent to own policy set by the home occupant’s income and their ability to pay for the house they reside in. A pers... ... middle of paper ... ...y, and learned some valuable lessons. One lesson that we must learn is that bigger is not always better. It is evident that all of the foreclosures that are now occurring will eventually cause the collapse of many banks and lending institutions. This needs to occur before things can get better. President Obama cannot continue to throw money at those industries that must stand on their own or eventually fail. It is law of nature that the strong will survive and prosper, and the weak will fall. This is the law of all nature and of capitalism. Works Cited Friedman, Thomas. The World is Flat: A Brief History of the Twenty-first Century. New York: Farrar, Straus, and Giroux, 2005. Print. Fuentes, Annette. News America Media.n.p. 14 Dec. 2009. Web. 30 Dec. 2009. http://news.newamericamedia.org/news/view_article.html?article_id=427c535a9ed285607409b54e12543922.

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