The Foreclosure Crisis Essays

The Foreclosure Crisis Essays

Length: 1510 words (4.3 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

This subject is a poignant one for me, and I write a response using the personal experience of our family as an illustration.
My mother, a well educated, high-income earner, had an auto accident in 2004 that caused her to quit working due to permanent brain injury. She was no longer the primary breadwinner. She was given a modest settlement, and decided that rather than invest in the market she would put the money into something she knew a lot about – real estate. With assistance from my father and friends, she purchased a property that was affordable, with house and lands enough to subdivide into several properties. Her interest was to create a gift to each of her children for their future since she could no longer work. The property transaction went through in 2007 with a purchase price of $405,000 and a mortgage of $364,500.
Over the next year, her consultant worked to divide the property, and after much work and cost, was able to gain approval to split the parcel in two parts. The review by the lender to do so took almost nine months to gain their agreement. In that time, the market in California began to implode.
It became obvious that she would not be able to sell without taking a huge loss, and settlement funds had run out. Eating into personal savings, my parents kept the mortgage going.
Perhaps no one knew how desperate the economic situation was to become. Perhaps there was a perception that the bounce-back would be quick. By 2008, the property value went from $405,000 to $250,000. Negotiation ensued with the lender for a loan modification based on the current value, and at a lower interest rate. My parents felt that they could “keep it going” out of savings until the market improved, if the lender r...

... middle of paper ...

...s and inability to do a work out with a mortgagee that makes sense due to severe regulation, really the most effective process for the United State and its citizenry? At this juncture, the process seems to provide mechanisms for the money lenders, and its guarantors, to avoid further destabilization.
People want to avoid foreclosure at all costs. Lenders and the government should not hide behind the regulations and time delays, and realize that helping the mortgagee IS helping them. Once a property held in Deed in Lieu goes or Foreclosure actually goes back to the lender, the house is often suffered from disuse, vandalism etc, which costs money to fix up and put back on the market. Using the illustration of my parents, the property would today be listed for $175,000 – the SAME amount for which the lender was offered an all-cash offer six months ago!

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Foreclosure Crisis Of Foreclosure Essay

- In today’s economy, people even in the best of situations are losing their homes due to foreclosure whether it was from unemployment or the cost of living people everywhere are facing a financial crisis and they are at risk at losing their home. I can empathize and relate with victims who have faced foreclosure or have been through such an event, because I have been there. In 2009, my husband and I celebrated buying our first home it was one of the happiest times ever in our life. A few months later, my husband lost his job so the financial struggle began, we kept up with our mortgage payment for up to a year, and then we started struggling and could not make the payment....   [tags: Full-time, Part-time, Foreclosure, Money]

Powerful Essays
895 words (2.6 pages)

Essay on Proposed Solution to the Foreclosure Crisis

- The economic crisis has become pervasive and no one is immune from its effects. Families are finding themselves in situations that they had only heard of others experiencing and are finding their circumstances spinning out of control and fast. There is an obvious need to assist families with real solutions now and fast. Mortgage companies are not quick to be compassionate or offer practical solutions to those who find themselves living paycheck to paycheck and then not having a paycheck and/or nothing in savings....   [tags: foreclosure, economy, financial]

Powerful Essays
1056 words (3 pages)

Proposed Solutions to the Foreclosure Crisis Essay

- Foreclosure is a growing national disaster in the United States. Every time you tune in to your local news, there is a new family whose house is being foreclosed. Every time you ride around the neighborhood, there is another house up for sale. There are several solutions to this increasing trend including cutting government spending and cutting funds towards unsuccessful government programs, devising financial plans to assist families by setting up payment plans that they can afford, getting communities more involved, more stimulus packages, raising the taxes of the wealthy to lower rates, and easing the limits on section eight housing....   [tags: foreclosure, financial, economy]

Powerful Essays
1052 words (3 pages)

Foreclosure Crisis Solution Essay example

- Foreclosure is a very sensitive topic and one that almost everyone decides to look up to the tax payers to solve. This is not a feasible option, like tax relief or programs of payment assistance as that only adds to the economy spiraling down and not solving issues for the homeowners. When faced with a person who is going through foreclosure the main concern of the lender is getting their money back. The capital invested in the buyer to purchase the house is ALWAYS secured by the house - but the interest is not....   [tags: foreclosure]

Powerful Essays
768 words (2.2 pages)

The Foreclosure Crisis And The Housing Crisis Essay

- Have you had a home foreclosed on in the past few years. Were you forced into a short sale to sell your home. Was there a bankruptcy. Are you now wanting to know if you are able to buy again. Congratulations, you are a Boomerang Buyer. According to Reality Trac, Millions of Americans who lost their homes during the foreclosure crisis are now poised to become homeowners again. They estimate that 7.3 million so-called "boomerang buyers" will return to the U.S. housing market over the next eight years....   [tags: Mortgage, Real estate, Subprime mortgage crisis]

Powerful Essays
1113 words (3.2 pages)

Proposed Options for Ending the Foreclosure Crisis Essay

- I really didn’t know much about foreclosure. So I did some research. I asked many people of many different ages from eighteen to sixty-two. A lot of people said,“ Just pay the bill”, but that is often easier said then done. Some said they got in over their heads and were not able to get out. Some also said that their income and credit look good on paper but did not cut it when it came to paying their bills. Some told me their income had changed due to losing their jobs or having a spouse pass away....   [tags: foreclosure, financial, real estate]

Powerful Essays
1309 words (3.7 pages)

Essay about How to End of the Foreclosure Crisis

- How to Get Out of the Foreclosure Crisis Our nation is indeed in a crisis in regards to foreclosures. I believe the approach to take to solution would be to thoroughly examine how the crisis occurred and resolve that situation. However, that would be a short term solution. I recommend that we also consider how to prevent the situation from occurring again, thus presenting a long term solution. Let us look at the components of the current matter at hand by defining what is what. I believe the best way to get out of our foreclosure crisis is to expand the pool of eligible buyers by changing the financing guidelines and increase funding for down-payment assistance....   [tags: Economics, Mortgage, Housing Crisis]

Powerful Essays
1611 words (4.6 pages)

How To Solve The Foreclosure Crisis Essay

- "How to Solve the Foreclosure Crisis" The foreclosure crisis in America isn’t something I just hear about on television or in my high school Economics class. It is something that my family and I have been living through for the last few years. It is not just a problem for banks and mortgage companies and politicians. It is a problem for real people like me. According to the Center for Responsible Lending, 2,400,000 foreclosures are projected to happen this year. I live in Arizona, a state that has one of the highest percentages of its citizens in some form of foreclosure....   [tags: Economics, Mortgage, Housing Crisis]

Powerful Essays
1094 words (3.1 pages)

How to Solve the Foreclosure Crisis Essay

- How to Solve the Foreclosure Crisis The subject of foreclosure is one that I know too well. I am currently trying to get my house out of foreclosure. It is not that I have not been in contact with Countrywide (now Bank of America), I have been in contact with them since July of 2008. I even signed a Modification Agreement in March of 2009. I thought that everything was okay. I sent all the paperwork in, signed and notarized, along with all of the financial information I was required to include with the Modification paperwork....   [tags: Economics, Mortgage, Housing Crisis]

Powerful Essays
1265 words (3.6 pages)

Essay on How to Solve the Foreclosure Crisis

- “I can see clearly now, the rain is gone. . .” This is the music that was playing in my mind when a solution to our foreclosure crisis took shape. I was in one of my electrical engineering classes and was thinking very deeply about my assignment. Simultaneously, my mind kept flashing the images of hundreds of homes in my county going into foreclosure. More homes went up for sale every week. Driving to school as the semester dragged on showed us all how hard our neighbors were struggling and failing in Oakland County....   [tags: Economics, Mortgage, Housing Crisis]

Powerful Essays
1799 words (5.1 pages)