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The Foreclosure Problem in America

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The amount of foreclosures in this country has caused an incredible burden to our economy. It was estimated that in December 2007 foreclosure filings had jumped 97% from the prior year. Since 2006 over 220 mortgage lenders have gone out of business, filed bankruptcy or significantly reduced their lending policies due to fallout from the subprime mortgage crisis (http://EzineArticle.com/?expert=Nick_Adama). The amount of homes in some stage of foreclosure jumped from 0.58% in 2006 to more than 1% in 2007. The foreclosure increase was the first sign of the trouble to come. As of October 2009 it has been shown that higher priced homes are taking a greater share in the foreclosure activity (www.Zillo.com). Some of the states with the highest foreclosure rates in the nation include California, Florida, Michigan, Colorado, Ohio, Georgia, Arizona, Illinois and Indiana (http://EzineArticle.com/?expert=Nick_Adama).

While there are certainly a number of causes for the crisis, it can no doubt be directly related to the current economy and the fact that the unemployment rate is the highest it has been since the great depression. However, the initial cause is more deeply rooted in the fact that buyers have been being approved for loans that were above their means. Lenders were so overzealous to increase the number of loans they closed on that they were lending funds to buyers with little to no money down. They were also not paying close enough attention to whether or not borrowers were really capable of repaying their loans. This trend led to a domino effect that increased the amount of buyers who could no longer afford their mortgage payments based on their debt to income ratio, forcing them to be foreclosed on. This effect has only be...

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...new jobs would be innumerable. This country has become as great as it is because we as a people work together to solve our problems. We need to come together once more to try to turn this economy around and find solutions to bring us back to the strong nation we were before.

I understand that the ramblings of an 18-year-old probably seem irrelevant when compared to those of elected officials, economic gurus and other experts; however I am honored to be given the opportunity to speak my mind and share my ideas for finding ways to turn around this economy, thus solving the foreclosure problem. This is crucial to securing not only my future but the future of all the other young adults making their mark on this county. After all, one day it will be up to my generation to lead this country and we need to preserve it for our children and our grandchildren.
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