The Foreclosure Crisis Essay example

The Foreclosure Crisis Essay example

Length: 1141 words (3.3 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

I often used to watch a show called “Extreme Makeover” where a team of builders would come to a neighborhood, build a need worthy family a beautiful new home, and then just give it to them. “Wow! What a lucky family,” I would say. “How fortunate.” However, as time went by, that same family would be in the news again. Why? The house was in foreclosure. The people had gone to the bank and taken out a mortgage against the home, then spent all the money they got for it on other things.
In a way, isn’t that how the whole foreclosure mess happened? Easy loans were freely granted to families who really didn’t have the knowledge or financial stability to responsibly handle a mortgage. When interest rates began to rise on these easy loans, well, you know what happened. This leads me back to my show. I considered the gift of a home to these people such a blessing. My parents scrimped and saved to make their mortgage payment every month. They did without buying things, budgeted their money, saved, and created an emergency cash reserve. Did these families realize the implications of what could happen if interest rates went up on the easy loan? Apparently not, and this got me to thinking.
Extreme Makeover hasn’t been canceled (yet) but wouldn’t it be a better show if there were safeguards in place to prevent the foreclosure of the home in the first place? This would involve the network, the sponsors, and the powers that be of putting stop gap measures into place before the cheers and tears of the episode ever even take place. For one thing, if a family has an imprudent loan, then the interest rate has to remain low. This isn’t the time to tinker around with it like a yo-yo. If stability is the goal, then interest rates...

... middle of paper ...

...trouble. If someone lost their job, and they can’t pay on their mortgage, let’s get that loan away from the bank and into the hands of a program designed to keep a family in a home, not out of it. Utilize Fannie Mae and a trade down program. If this means redesigning the entire foreclosure process, then so be it.
The program, unlike the show “Extreme Makeover,” would not be a something for nothing idea. It would require the commitment of direct deposit into a mortgage payment account, financial responsibility classes, and a work program. It might be easier just to let it all come crashing down, but the hard work method will be more rewarding in the long run. Why? Because the word foreclosure won’t loom around the dinner table of a hard-working family, instead it will be what used to happen before they were able to take action in this program to prevent it.

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]

Strong 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]

Strong 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]

Strong 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]

Strong 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]

Strong 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]

Strong 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]

Strong 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]

Strong 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]

Strong 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]

Strong Essays
1799 words (5.1 pages)