The Foreclosure Epidemic Essay

The Foreclosure Epidemic Essay

Length: 1044 words (3 double-spaced pages)

Rating: Strong Essays

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The growing number of pre-foreclosures or short sales and subsequent foreclosures has grown to widespread proportions in the United States. Today it provides the single biggest threat to the U.S. economy. Projections point toward more and more foreclosures in the future if something isn’t done. It seems that the current policy in place has only helped too few people, and the efforts toward fixing the problem must be continued. The New York Times reported, “Foreclosures are costing neighboring families hundreds of billions of dollars and dragging down the entire economy. Foreclosures started today’s crisis, and foreclosures will keep the crisis going if this epidemic continues.” I agree with this statement; something must be done.
The government has steeped in and tried to make 4.5% mortgages available to new homebuyers. Although this is a start, this fails to recognize the people that have subprime mortgages. It is these people that will eventually foreclose, and so this group must be focused on. People will continue to go belly-up on mortgages until something is done for the increasing group of people that are facing foreclosure.
Pre-foreclosure sales, or short sales as we know them, are becoming the “best” alternative for families to get out of their bad mortgages. If we can stop the problem at the pre-foreclosure stage, we can potentially prevent millions of foreclosures in America. If people have a reasonable way to fix their situations we will be able to reduce and possibly eliminate foreclosures.
But, the question still remains: How do we go about doing this? Well I believe we must look to the banks for help. They played a role in starting this problem by handing out tons of subprime and bad...

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... should back American companies by giving them tax cuts for employing Americans and bringing jobs here. If we can get people jobs they will be able to afford their homes.
Although it won’t be easy and won’t be fixed over night, there are things we can do as a country to stimulate our economy. These ideas won’t cost the banks and the government as much money and will allow people to keep their homes. When people don’t have to loose their credit because of their misfortunes in this economy they will be able to continue to use their credit and money to give back to the American economy, leading to a turn in the direction of the economy. It won’t change by tomorrow, but we have to start somewhere. Let’s have the banks work on stopping the foreclosure crisis one homeowner or buyer at a time, and soon we will see some major changes in our economy.

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