The Foreclosure Crisis: If At First You Don't Succeed...

1093 Words5 Pages
Let’s do it again! The cause can be the cure. If at first you don’t succeed try, try again. Let’s get back to basics. This is my premise for a solution to the foreclosure crisis. I am a personal victim of the foreclosure crisis. I am also someone who has been involved with mortgages and finance. The foreclosure crisis and resulting economic meltdown has forced me to analyze what went down and to continuously rethink what could have been done better. I have returned to school and I am pursuing a degree in nursing. After a being in business for a number of years this is a complete 360 for me. In retrospect with the degree I am pursuing I am looking forward to a much more rewarding life. Yet, I do look back with fondness at my financial careers and wonder about the foreclosure crisis that completely changed my life. The crisis stemmed from overzealous banks and mortgage brokers refinancing and giving home loans whether it was good for them or not. Many argue that the crisis is a result of individuals with poor credit receiving home loans. That is true, but not for the reason most think (that because their credit is bad they do not pay their bills). Programs for home loans were created for the” less than perfect credit” home buyer. They were designed to help but resulted in destroying the home buyer because the greedy banks and brokers sold programs to anybody they could make a commission off of. These programs were adjustable rate, interest only, and balloon payment to name a few. Most people do not know what these terms mean but took the word of the loan officer that the loan program was suitable. These officers had no formal training or finance degrees, most didn’t even own their own homes. Yet they advised indiv... ... middle of paper ... ...elationship with. Lastly, by encouraging loans for that “less than perfect credit” individual, they would start looking for homes again. This would allow people to sell their homes prior to foreclosure since there would be a market now. It would also protect the perfect credit individual by maintaining home values. If you live next door to house that was foreclosed on, it has a negative effect on your home as well and creates the domino effect. Buying is the best cure for a bad economy. We didn’t do it right the first time, but by making fair loans available to the little guy, and offering them the proper advise by a good, salaried, professionally trained loan officer, the foreclosure crisis would end and the economy would reestablish itself. Remember, let’s get back to basics, the cause can be the cure and if at first you don’t succeed…… ,

More about The Foreclosure Crisis: If At First You Don't Succeed...

Open Document