Solving the Foreclosure Crisis

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In today’s economy, foreclosure is a major problem that is only getting worse; statistics show that one in every two-hundred homes are will be foreclosed this year. At this rate, in the average American classroom at least one student’s home is at risk due to their parents inability to pay the mortgage. In fact, 250,000 families enter into foreclosure every three months. Due to lack of reasonable thinking and assets , forty-three percent of Americans spend more than they make every month. Fifty-two percent of Americans are living pay check to pay check causing them to be at risk of foreclosure. Although foreclosure is a growing problem, with the proper background checks, more government programs, and renting before buying the foreclosure crisis can be solved.

Recent years have proven that getting money to buy a home has become extremely easy. To qualify for a loan all one really needs is a checking account and what a lending association considers “good” credit. Mortgage companies, banks, and other lending associations -in my opinion- are giving money to those who can not afford the loan’s repayment. (Eighty-five percent of Americans are behind by one payment.) Solving this problem can be an easy task if lending associations are willing to take the time to go through the proper (necessary) procedures. Lending associations should be more thorough when conducting extensive investigations in credit and job history. Instead of looking for a “good” credit score (620-650), lending associations should be looking for an excellent credit scores (above 660). Also, a job history check should be conducted; a lending association should make sure the person they are giving a loan to is able to hold a steady job for lengthy amounts of time. Lendi...

... middle of paper ... who has rented a house and has a better idea of how to budget so the mortgage always paid on time.

During this recession, foreclosure is a nightmare that many Americans are facing as a reality. Foreclosure has done extensive damage to the real estate market due to the number of people who are afraid to buy a home and possibly lose it all. Job loss, health, and missing payments are the leading causes in foreclosure that could happen to anyone at anytime. Lending associations are also losing it all during this foreclosure crisis. When a foreclosed home is not bought, the lending association loses money. America and American people need to step it up and demand the best for themselves and their economy. America needs proper background checks, government programs, and renting to solve the foreclosure crisis and pull everyone out of the rut they are in.
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