The Foreclosure Crisis and the American Economy

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One of the major issues in our economy is the issue of foreclosure. With our rapidly dropping economy keeping a home is a difficult task for many home owners. Also with the increasing unemployment rates, many people are losing their jobs, and no house payment can be kept up with only an unemployment check. There are many existing ways to decrease the occurrence of foreclosure but also many ideas that have not been heard.

Foreclosure is an unfortunate reoccurring incident that some how some way must be taken care of. A personal idea to aid in the quest of foreclosure abolishment is that banks should give people brakes based on personal incidents such as divorce, loss of job, death in the family, and any other unfortunate occurrence. But in order to be eligible for this, a credit history check and background check should be required to make sure the persons being given this opportunity are responsible and reliable and deserve a chance. Also proof of the family or personal complication must be presented, if the person is eligible then the bank should give an extended payment plan, or create a payment plan to fit the persons financial crisis. I believe this plan will decrease the percentage of foreclosure and help people keep their homes.

An extended payment plan for eligible people is one idea but what about people who aren’t eligible? What about the people who simply can not afford to pay their mortgage or afford a down payment on a cheaper place? Or what about the people who have bad credit or no credit due to an unfortunate event such as identity theft? 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 ...

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...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.
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