Getting a Grip on Foreclosure Essay

Getting a Grip on Foreclosure Essay

Length: 1034 words (3 double-spaced pages)

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Many Americans today are watching helplessly as the dream of owning their own home turns into a nightmare. The recession has taken its toll on the American Dream of home-ownership. Some Americans who find themselves falling behind on their mortgage are simply walking away and giving their homes back to the mortgage companies. The neighborhoods of America are cluttered with homes setting empty as a result of foreclosures. We as a nation must find an alternative to home foreclosure that offers hope for homeowners who feel it is impossible to regain control over their mortgage payments.
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...

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...-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.

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