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Solving the Foreclosure Crisis

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Solving the foreclosure crisis is not an easy quest. In order to solve the crisis, it will take everyone getting involved. The banks and other lenders need to be willing to work with people who have been in their homes and need to have their loans restructured or refinanced. There should not be any more QUICK FIXES. Too many of the lending institutions are trying to put a bandage on an open wound. Instead of working with the homeowners, they are willing to put the residents out of the homes and think that this will solve the problem. The only thing that does is leave the houses open for vandals to destroy the houses. Many houses are broken into. People steal the copper, fixtures and what ever they can carry out to make quick money. Unfortunately, the houses become eyesores and are often used by vagrants, drugs, sex or other despicable things. The grass and other vegetation grow on the property and many rodents and insects move in. Once the property gets out of control, no one is willing to correct the problem. The banks and other lenders are not willing to up keep the property.

The banks and other lending institutions should have several plans to help the homeowners keep their properties. If a homeowner has been in the house for at least three years, then the lending institution should find some solutions to help the homeowner. If the homeowner has steady income, then the bank should refinance the loan. The credit score is the reason a lot of people are not able to refinance their homes. The credit score should not be the determining factor. Other factors should include the longevity on the job; the ability to pay the loan at a lower amount; a lower interest rate; consolidating other debt with the mortgage loan and converting ...

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...n afford to have it placed on the loan at the onset. The Private Mortgage Insurance (PMI) should be eliminated after the homeowner has made payments on the house for two years. Although the insurance is used to help the mortgage company in case of default, it can be an unnecessary burden on the homeowner. The elimination of the insurance will reduce the payment by a minimum of $100 each month. That will help the homeowner tremendously in both the short and long term of the loan. Finally, the lenders should make sure the homeowner can afford to pay for the house they are interested in. So many people were placed in houses that were well above their means but because of greed this has caused a lot of people to lose their homes. Lenders should take the proper steps and make sure the person can afford the house they want to purchase to reduce the foreclosure crisis.
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