Solving the Foreclosure Crisis: The Reduced Payments Deposit Program

1191 Words3 Pages

How to Solve the Foreclosure Crisis.

How do we solve the foreclosure crisis that now affects this great nation? That is a great question. It's definitely not going to be easy. There are no over night solutions or quick fixes. There is not one right answer, and there may not be only one way to fix this problem that we now face. But we do know that there is a big foreclosure crisis going on and that we have to take steps to try and fix it, and I have an idea on how to fix it.

First off, I think that we need to look at where the train is coming off the track. Where is the biggest problem? The answer? Consumers. Consumers bought houses assuming that they had job security and that they would be able to pay there bills, and be able to afford their houses. But unfortunately we are now in a recession, with more and more people losing their jobs, and being laid off each month. Consumers are not making the money they originally believed that they were going to be making in order to pay their mortgages. So they are defaulting and not making payments and being forced into foreclosure. Consumers can no longer afford to make/pay their monthly mortgage payments. That's why I believe that it is important to start there, and to help out the consumer.

I believe the Reduced Payments Deposit Program (RPDP) could help consumers stay out of foreclosure, and maybe help get the ball rolling again with consumer confidence, and maybe even help out the banking system.

With the Reduced Payments Deposit Program there are no bailouts, there is no free money, there are no handouts. RPDP does not relieve you of paying your bills, and just saying “Here we will take care of it for you”. But it does give a sense of security to the consumer, and hopefull...

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...tead of hoping that everyone is going to make their original mortgage payments, but currently in some instances they don't make any payment because they can't afford it. I hope it gives banks a clearer picture of what to expect as far receiving payments, instead of a substantial loss. It will also restore some consumer confidence because they will no longer be worrying about what bills will be paid this month. Consumers will now be able to have the piece of mind that they will be able to afford their mortgage that month, and maybe also start spending again, which could greatly impact our economy. I just hope when the spending does start happening again that they are a little more wiser about it, and can still afford their bills, so that we don't fall into another crisis. This is why I think that my Reduced Payment Deposit Program can help fix the foreclosure crisis.

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Solving the Foreclosure Crisis: The Reduced Payments Deposit Program

The Role of the Community Reinvestment Act on the 2007 Housing Bubble Collapse

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