How to Solve the Foreclosure Crisis: Return Owners to their Homes Essay

How to Solve the Foreclosure Crisis: Return Owners to their Homes Essay

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At this time we are facing a recession of which we have not seen for eight decades. A high volume of homeowners are in foreclosure. It is also said that banks are not in the business of selling homes, but the banks assign a broker to sell the homes for them. The brokers are one of the major problems.

They’re not helping to resolve the problems of the foreclosure crisis. They are looking to make their pockets fat. They are trying to get the highest commission that they can! Instead of accepting a reasonable price for a home, they attempt to get the highest price that they can. These tactics allow the homes to sit on the market for much longer and the banks are forced to lower the price anyway.

While the homes are sitting there, it becomes a place for vandals and squatters. The neighbors living in close proximity to the foreclosed house suffer a loss. There is a decrease in the value of their own homes as the neighborhood begins to deteriorate. This, in turn, lowers the property value of the entire neighborhood causing potential buyers to avoid purchase. The problem is cyclical.

According to a report by the Joint Economic Committee of Congress, the average foreclosure cost about $151,000, with several parties picking up the tab: Homeowner: $7,000, Lender: $50,000, Local government: $19,000, Impact on neighboring home
values: $75,000, Estimated total cost of one foreclosure: $151,000, and billion in losses annually. In the end everyone loses.
There are real estate investors who are purchasing homes. They purchase homes for
cash. It’s nice to be able to purchase a home for cash. But most of us do not have the resources to purchase a home. So we are forced to do it the conventional way by getting a loan. An investor ...


... middle of paper ...


...at will allow the final price closer to the asking price. Now the buyer can afford their new home.

There should be more non-profit organization that can assist the struggling home owners to restructure their delinquent mortgage without being charged for it. I have seen and heard many people complain that when they attempted to get assistance from a company that is supposed to get them out of the foreclosure problems they are charged a large fee. A fee that they do not have. Now they are back to square one trying to figure out how to get out of the crisis.

All the thousands of foreclosed homes should be offered to the home owner that have lost their homes. It should be a rent to own but at an affordable price. So we can re-build the communities, families and the dignity of all the many people who was facing a crisis or people attempting to start a new beginning.

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