Foreclosure Solution Scholarship Essay

Foreclosure Solution Scholarship Essay

Length: 1057 words (3 double-spaced pages)

Rating: Strong Essays

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This is a subject that has hit quite close to home for me. Recently, my parents underwent a financial hardship and subsequently lost their house this past year. They tried all available avenues to them to renegotiate the note, but they kept finding themselves in a Catch 22. Ultimately, after 2 years of trying to refinance, sell and proceed with so-called “work out plans” I helped them negotiate a deed in lieu of foreclosure just before a sell date was scheduled by the bank for their home in a full foreclosure.
The solution would have been a simple one, but one the bank was not willing to entertain. It seems the largest hurdle homeowner’s are struggling with is the past due deficiency that begins the foreclosure process. Lenders have a requirement that this past due balance on a mortgage is to be made whole in one payment, before they will accept any regular mortgage payments, which increases the balance overdue and the delinquency. More often than not this alone prevents homeowners from becoming current. To make smaller payments to the deficiency would result in some progress towards correcting any default by the homeowner, but this alone won’t fix the situation they may be in.
Many times the interest rate has become so formidable that what was once supposed to be an American dream has turned into a nightmare. It is common knowledge that sub prime lending has resulted in many of the foreclosures we see today. The families living in these homes simply can’t keep up with the rates their mortgage sometimes increases to. It is not without saying some responsibility does fall on the borrower, although we cannot expect them to refinance or participate in loan modifications if they could not qualify for a conventional loan in the f...

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...and it gives peace of mind to the homeowner who is not in fear of a pending foreclosure and can function with a clear mind.
I saw the stress and heartache my parents went through this last year. It was the house my dad had built himself for our family 12 years earlier. Going through a foreclosure is all consuming and it alters the way you go about your life. It is an embarrassing process for those going through it and I guarantee they would rather be compliant than have to explain why they are moving to their neighbors. Most of these people are not looking for a magic wand to make it right, they simply need a hand in understanding the process to make it less intimidating. If a solution was offered to those in a similar situation and explained properly, many of them would accept the help and show their appreciation by keeping up with the terms of the new agreement.

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