Being from an area of the country hit very hard by the automobile industry’s downfall I know many people who are in need of immediate help, as they are in the process of having their mortgages foreclosed. Several homeowners took advantage of the easy to obtain credit experienced in America during the late 1990s and early 2000s, and now find themselves “buried in their mortgage”. They borrowed amounts above their home’s value, and now that these values have dropped tremendously so they cannot even come close to selling their homes for what they owe. Lending companies are partly responsible for the troubled real estate market we are now experiencing, as they should have never allowed anyone to borrow more than 90% of a homes value. We cannot undo the mistakes already incurred, however we can alleviate some of the damage and help American homeowners that are facing foreclosure.
Lending companies need to offer alternative mortgages to those homeowners that are no longer able to pay their payments as long as these borrowers are willing to work out an optional payment plan. There will always be a percentage of borrowers that are simply irrespon...
... middle of paper ...
...-estate market create a no-win situation for all involved when it comes to foreclosure.
With a little creativity and a few concessions from both the mortgage lenders and borrowers, the American Dream of homeownership can survive. The real-estate market as a whole would benefit from a solution to foreclosure as fewer foreclosed homes on the market would help restore property values for all American homeowners. The drop in the real-estate market was inevitable as home prices were over-inflated due to mortgage fraud and loose credit, but we must get a grip on the foreclosure rate and stabilize the market. We as a nation need to learn from our mistakes and regain control of the mortgage industry. As always in America, if we work together to solve the issues faces by thousands of American homeowners everyone involved will benefit in the future.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Upon the news of the 700 billion dollar bailout for Wall Street, on some level, there was outrage among the people. Not that it wasn’t a good thing to save companies that would have likely caused even worse problems for the economy than what already exist, had they been allowed to go under, but the oft repeated question was “While there’s a bailout for Wall Street, where’s the bailout for Main Street?” The common man who’d strived hard his entire life to make an honest living found himself feeling left out of that plan, while large corporations—many of whom engaged in not so ethical practices to propel themselves to the top, also cause their own downfall—seemed to be getting all the breaks.... [tags: Foreclosures, ]
1576 words (4.5 pages)
- 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]
768 words (2.2 pages)
- The foreclosure crisis in our country is a problem that is affecting many Americans today. This calamity has also had a negative impact on our overall economy. The federal government can make steps that would help solve this crisis that would benefit homeowners, potential homeowners, financial institutions and all people that have been indirectly affected by this issue. My first recommendation would be for President Barrack Obama to issue an executive order that would establish a moratorium on foreclosures for a period of one year.... [tags: Foreclosures,]
1111 words (3.2 pages)
- 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]
895 words (2.6 pages)
- Of every issue facing the American people today, including our wars in Afghanistan and Iraq, our floundering economy, and our troubling health care system, none may be considered quite so frightening as the state of the sub-prime mortgage crisis. While matters in the Middle East and Washington often seem irrelevant and far away, the beast that has evolved out of low interest rates and plummeting housing costs is currently breathing down the necks of Americans in every state, city, and neighborhood.... [tags: foreclosure]
2172 words (6.2 pages)
- Necessary evil One in every 96 homes reported of at least one foreclosure filing in 2013. Now imagine the family that lives in that home having to leach on to their family members for survival which could cause their family member in turn get in dept. and their home getting foreclosed also or worse them living on the street with nothing. This is what foreclosure causes. Foreclosure is a necessary evil but a necessary evil is still an evil in the end. Foreclosure is a legal process in which a lender attempts to recover the balance of a loan form the borrower who has stopped making payments to the lender by forcing the sale of the asset used as collateral for the loan.... [tags: Loan, Debt, Foreclosure, Money]
804 words (2.3 pages)
- There are many programs available to stop a foreclosure which is a reactive approach to solving the foreclosure problem. We can’t turn back time and change the fact that houses have depreciated in value or prevent an unexpected layoff, but moving forward we can take steps to prevent further foreclosures. One obvious method is to promote awareness about the negative risks of overextending one’s credit. We see ads on television about the ill-effects of drugs and alcohol, but it’s rare to see an ad about avoiding the use of credit cards.... [tags: Foreclosure, economy, ISA, ]
1378 words (3.9 pages)
- The foreclosure crisis is the worst seen by the United States in all of its history. The fact that thousands of people have lost their homes is a sobering thought. There are several reasons why foreclosures happen and they all point toward the mortgage companies, banks, the economy and the Federal Government. Still, finger pointing and blaming is not the solution. The time has come not only to fix the problem immediately, but also to provide safeguards to prevent it from happening again. This requires nothing less than a strong hand from the government.... [tags: foreclosure, economy]
1974 words (5.6 pages)
- 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]
1052 words (3 pages)
- Everything was great when I went to bed. My parents weren't letting off a hint that anything was wrong. When I woke up in the morning, one of the officers from the Wells Fargo bank was sitting at the kitchen table. I overheard that savage word, "foreclose." The sound nearly made me wince. He excused himself, apologized for inconveniences, and made his way to disrupt someone else's day. My mother began to cry, and my dad shook his head. The bad economy had hit my family pretty hard. The worst part is that our house was going to be taken away, which obviously meant that I would not be getting a car for Christmas like my parents had promised me.... [tags: foreclosure plans, Obama, economy,]
786 words (2.2 pages)