Solving the Foreclosure Crisis

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What is happening to the “American Dream”? Why are low and middle income people loosing their homes? All of us must ask ourselves these questions and look for a solution of this problem. Americans are loosing their homes at rapid rates. According to the CNBC.com Highest State Foreclosure Rates slideshow, the highest state foreclosure rates recorded in 2009 were in Nevada at the rate of one in every 119 households. Florida’s foreclosure rate was one in every 165 households and California’s one in every 180 households. (CNBC.com) Collectively, American citizens should take greater responsibility when it comes to mortgage payments, affordability and the cultural norms of living in the moment. This instant gratification has led young generations to use credit cards and loans excessively--thinking that instant happiness occurs. Having material possessions is important in such materialistic society. Individuals’ desire is driven to buy more than what they can afford. This situation is obvious in many instances with middle aged population. Often, individuals even ignore what their actual needs are in order to keep up with the Joneses. Greed and competition among people has led to the current financial crisis. Therefore, the mortgage crisis is just one part of the greater financial crisis problem in America. The following steps should be considered and implemented by the government and individuals in order to prevent current and future home foreclosures: 1) private individuals “bail out” by the federal government, 2) trust and consumer awareness between banks and clients, 3) tax benefits and credits when individuals are using investments to pay for mortgage, and 4) thorough financial education of generation Y. First, the federa... ... middle of paper ... ...is very basic, nevertheless the most important step one can do. All of us should teach our children to save money for a rainy day! When those children are out of college and ready for their dream house purchase, they will know how to get an adequate loan in obtaining that dream house in accordance to their available income and assets. It can also be assumed the current economy will grow in the near future—improving stock markets, increasing home values and employment. All of these factors will assure Americans keep their existing homes. Once the current economy gloom improves as a result of positive government influence and boosted consumer confidence, many individuals will be able to pay their mortgage without any hardship. In order to enable Americans to purse the “American Dream” once again, sound economic policies must be implemented by the government!

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