Dose the person have any other houses they own already, if they do upkeep is costly. There are many things in life that cost a good deal of money that do not show up on our credit report. Make the person borrowing the money have at least 15% of the home’s value in a savings ... ... middle of paper ... ...nies to give out at “there will”, because they are only going to give it out where they can make the most profit. The government should buy the mortgage itself from the mortgage companies. Then they would be able to regain the money in the house payments, not just give it away making the national dept larger.
Sadly, they are sunk in debt and can’t find work in order to support their families. Too many people are becoming victims in this cruel economic time and losing their homes. My proposal to fix this problem, is to restructure the foreclosure practices that banks are resorting to. The reason banks do it? Banks have investors they need to please; they have annual reports to publish to the public.
People across the nation have been seeing the word “foreclosure” posted up in front of houses more often lately. This particular problem of people losing their homes is because of a recession that the nation is experiencing. Many solutions to solving this problem have been thought of but turned down. A possible answer for fixing this foreclosure issue is as follows: in order for people to keep there homes during this time of recession, it may be ideal to provide the home owners with extended contracts on their homes with lower payments each month, so that the contractor still receives all their necessary payments and the client can still afford to keep their house. This solution will help solve many of the problems such as people buying houses they can’t afford and contractors offering high sales rates.
If we do not fix what we have done in our past, now, we can never change what we will do in our future. This makes sense at any level of change and development when you take a deeper reasonable look at problems. Recently, I have heard that it is the Realtor’s fault for the soaring prices of homes for sale in many communities. I have also heard that it is the banks fault for lending out more mortgages than they are allowed to, therefore causing an eruption of foreclosed homes. Another great fault was caused by many people who went out and purchased homes when they did not have the actual funds to.
We as a nation must find an alternative to home foreclosure that offers hope for homeowners who feel it is impossible to regain control over their mortgage payments. Being from an area of the country hit very hard by the automobile industry’s downfall I know many people who are in need of immediate help, as they are in the process of having their mortgages foreclosed. Several homeowners took advantage of the easy to obtain credit experienced in America during the late 1990s and early 2000s, and now find themselves “buried in their mortgage”. They borrowed amounts above their home’s value, and now that these values have dropped tremendously so they cannot even come close to selling their homes for what they owe. Lending companies are partly responsible for the troubled real estate market we are now experiencing, as they should have never allowed anyone to borrow more than 90% of a homes value.
Many people put a lot of money into a home, then some incident comes along making keeping up with payments more of a challenge, but is it really unfair that their home ... ... middle of paper ... ...e doing the responsible thing in the process, the amount of missed payments should affect credit because the Person didn’t immediately take the actions necessary when they knew they would soon find themselves in a financial hole. But by decreasing payments and increasing interest rates on people who are struggling to pay their mortgage, it makes it so both parties receive a victory, the bank gets its money and the person gets their chance. Foreclosure is definitely a reoccurring predicament that continues to be a home owner’s worst nightmare. It is not an easy dilemma to abolish, it is definitely one that needs a lot of thought put into it, but immediate action must be taken to protect people from losing their homes. Many existing ideas have aided home owners from getting their houses foreclosed upon, but I hope my ideas can aid in the process even further.
The frequency of foreclosure in our nation today is dangerously high. The strain from the recent economic downturn has put many families and individuals in a financial chokehold preventing them from being able to make their monthly mortgage payments. Consequently, many of these people feel they’ve punched a one-way ticket to foreclosure. With all these homes being foreclosed on, we face a very real crisis. The best way to solve this foreclosure crisis is preventing homes from foreclosing one house at a time.
Presently in the United States millions of homeowners are facing the prospect of losing their homes due to bank foreclosure. An event if allowed to occur has the potential of collapsing not only our financial system, but our social fabric as a nation. The unfolding crisis has prompted the US Government to enact aggressive monetary stimulus designed to reverse the downward spiral of home values. Unfortunately this approach has failed to achieve any meaningful results and perhaps has acted more as a red herring to conceal the real issues causing this debt implosion. With billions of dollars being pumped into the banking system why then are banks still timid to continue financing home loans?
It is clear that the foreclosure rate in the U.S. is a problem that has not been resolved with the recent Stimulus Act and other measures taken to correct the problem. The root problems of the foreclosure crisis are consumers buying a home they cannot afford, decreasing neighborhood home values, home owners who have not planned for emergencies and unexpected expenses, refinancing homes to make unwise investments or cover increasing debt, and lastly banking lending practices. Implementing solutions that support education, responsibility, long-lasting results and proper banking regulation will help to correct the foreclosure trend. Everyday consumers are purchasing homes they cannot afford. Looking to impress friends, family and co-workers and give the image of success is very popular among American culture.
During the time of this economic crisis, many people are foreclosing on their homes because of inflation in the housing market. It is said by the Mortgage Bankers Association that one out of every 200 Americans will have a foreclosed house. In America, that is a lot of homes that are unoccupied. In this time of crisis, there needs to be a way so that people can stay in their homes for just a little bit longer to conjure up the money to pay off their bills during this recession. Today, millions of Americans are suffering lost jobs and cut hours because of the recession.