Solving the Foreclosure Crisis

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The U.S foreclosure crisis boils down to the need for jobs, and a means to help Americans obtain a sustainable income. The issue of foreclosures comes from the struggle from both the home owner(s) and the mortgage companies to sustain their assets during an economic crisis. The mortgage company revokes the home if the home owner(s) is unable to pay the principle or interest payments of their home. This is due to the owner losing their source of income or from being “laid-off” from an employer or from medical conditions that prevents the owner from working. The first solution is to make sure that the home owner(s) cannot lose their home. The U.S. government is going to have to invest in funds to help both the mortgage companies and the home owners survive in this economic crisis. The government needs to allocate funds to mortgage companies to help them sustain their entities and work a deal with them to help home owners keep their home. The government will pay the principle payments to the mortgage companies and home owners will pay only the fixed interest rates of their mortgage payments. The home owner(s) can use the funds obtained from unemployment benefits to pay the fixed interest rate to keep their home. The funds that the government helps to pay the mortgage companies will be similar to a loan that the home owners will have deducted from their paychecks once they obtain a new job ( similar to Medicare); keeping in mind the varying incomes of individuals this “repayment” will be long term until paid off . If home owner(s) sell their home the funds will go towards paying off the loan. With this method, the mortgage companies get funds from both the government and home owner(s) to sustain their company, and home owner(s) do n... ... middle of paper ... ... argue that this will become an issue of competition in the job market with college graduates and those with higher college degrees, but in the long run, salary amount will be the large divide in those who hold a university degree from those with a training certificate from one of these “Public Career Training Centers.” The purpose of these centers it to provide a place where individuals who have lost their jobs can come and be trained to be successful in obtaining a job. Hopefully with active effort to educate one self, the companies can see that despite a person having a criminal background, having lost a job, or having a lower education is still worthy of the position. Also with this method of “public schooling,” it will help inspire individuals to pursue a higher college degree once they have secured their home from foreclosure and obtained a base of income.

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