I really didn’t know much about foreclosure. So I did some research. I asked many people of many different ages from eighteen to sixty-two. A lot of people said,“ Just pay the bill”, but that is often easier said then done. Some said they got in over their heads and were not able to get out. Some also said that their income and credit look good on paper but did not cut it when it came to paying their bills. Some told me their income had changed due to losing their jobs or having a spouse pass away. There are many circumstances that are out of people‘s control. Attempting to gain some control over the situation often is better than just praying that nothing bad will happen.
I figure the best way to stop foreclosure in the United States would be having options when things get tough. It’s human nature to think “wow I have good credit and I make good money” and not to look deeper into their finances. To have more then the neighbor, keeping up with the Jones or Smiths no longer cuts it. We all need someone to say you can’t afford a sixty-thousand home but you can a thirty-thousand. To have sense of security and what you actually can afford at the beginning can help a person know that they are able to bounce back once things get tough. We all need help once or twice in our life.
If there is someone who is looking for a home that costs sixty-thousand dollars and they make nineteen-thousand dollars a year and their credit looks good on paper many people would stop there. I feel as though the finance companies should look deeper into the monthly payment to determine what the family or person will be able to afford in the long term. If you look deeper into the profile of a family, and see they have two credit card payments, two car payme...
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This plan allows families a chance to keep their homes when they are in difficult situations. The banks would be able to still get their interest during the grace period. With the insurance purchased, the banks would also be able to get the five-percent, so they would not lose that either. This would also help the homeowner because it is the reason they purchased the insurance in the first place. In the situation that the family does not need to use the insurance the company and bank still make the money that was paid for the insurance in the first place. I feel this would be a win win plan for everyone involved. The loan holder wouldn’t have to worry about losing their home and the bank wouldn‘t have to worry about losing their money either. This would also help the economy because people would be living within their means, instead of way beyond their means.
“Americans without insurance coverage will be able to choose the insurance coverage that works best for them in a new open, competitive insurance market – the same insurance market that every member of Congress will be required to use for their insurance. The insurance exchange will pool buying power and give Americans new affordable choices of private insurance plans that have to compete for their business based on cost and quality. Small business owners will not only be able to choose insurance coverage through this exchange, but will receive a new tax credit to help offset the cost of covering their employees.
For the decades before the current housing crisis, buying homes and loaning money was a simple, but strict, affair and had had two outcomes. Either the borrower could pay back the money owed or they could not pay the money back. If the borrower could pay the money back, they could keep their house or whatever they took out the loan for. If they could not pay the money back, the lenders repossess the things that were not paid for. When this happens with a house, it is called foreclosure.
After long meditation on the topic of “if I was allotted $150,000 for a distressed real estate purchase”, the first thing that came to mind was to get my home out of foreclosure. However, I quickly rebuked that thought from my mind, because the only thing that breaks my heart more than the thought of losing my own home, is the realization that many young men and women like myself have already fallen prey to foreclosure; I can only imagine the sorrow and the pain felt with watching you and your family being put out of the one place where you find safety and peace.
The frequency of foreclosure in our nation today is dangerously high. The strain from the recent economic downturn has put many families and individuals in a financial chokehold preventing them from being able to make their monthly mortgage payments. Consequently, many of these people feel they’ve punched a one-way ticket to foreclosure. With all these homes being foreclosed on, we face a very real crisis.
With the Affordable Care Act, everyone is either required to be insured or pay a fine every year for not being insured. One way or another, U.S. citizens must buy into the system. If an American citizen is not covered by their employer, does not qualify for government assistance or can’t afford insurance on their own, they will be required to pay a fee according to their income and household size by the end of the year. Although, our health care is not universal, requiring everyone to buy into the system could at least reduce the overall cost of health care. This could reduce the overall cost of health care and is beneficial when it comes to taking care of the less fortunate citizens of America. However, there will still be millions of individuals still uninsured and taking a huge risk by not being covered. This does not do much for us as a country in reducing the amount of bankruptcy in America that is a result of medical bills. According to Huffington Post reporter, J. Young, roughly 31 million people are still living without health
Many people cannot afford to pay the monthly payments; therefore, they stop their insurance and become uninsured for months or even years. There are many ways people can pay for health care. Community Rating and Experience Rating is a very interesting way to pay for medical bills. With Community Rating, all the people who are members pay the same monthly payments. It doesn’t matter which group they are in. With Experience Rating, all the people who are members pay different premiums. The members who become ill will benefit from the members who stay healthy. It is very unique how the members benefit from each other, but it can still be a little confusing. It is important for the United States to make a payment plan everyone can afford and have health insurance
...just as welfare helped people during the great depression, this new plan could help people during this extreme recession. It is so important to keep people in their homes and not on the street and with help from our government and each individual taking responsibility for their actions, the amount of people facing foreclosure can decrease. Every American wants to know that they have a place to go home to and to call their own. For many people placing their homes up for foreclosure was something they never thought would happen and it is easy to say what one would have done to prevent this. As American we must stop blaming and looking at what has happened to the housing market and start planning on ways to fix this situation. Our country should take the resources we have now in the present, and create a plane to insure that every person is taken care of in the future.
More than 30 percent on housing and persistent inequality in housing and employment opportunities has gone down. That has created a significant lower homeownership rate for African -Americans and Latino families. Many people believe that the mortgage rates in America is threating the confidence of homeownership. I strongly believe that statement is true because seeing what foreclosure has done to Americas economy it tends to drain and disrupts a person state of mind of striving and going for what they want. It mentally crushes them which later leads to sorrow and sadness emotionally.
I wonder if as a family opens the door to their new home, a place where they have holiday dinners, celebrate birthday parties or just are able to say “Home”, understands the importance of their investment. One of the most important investments in a person’s life is purchasing a home. Whether it’s a first-time home buyer or a veteran, buying a home is a complex process. Figuring out how much you can afford, learning your rights, shopping for loans, these are a few steps in the home buying process that when learned correctly, can produce a successful homeowner. Learning how to take care of something as special as a home takes time and effort from all those who are present in the home. As the country deals with the economy and the war, the last thing America needs is more homeless people and the rise of the crime rate. Two ideas I have come up with to help solve the foreclosure crisis is to add a investment course to the high school curriculum across America and insurance companies creating an insurance package that consolidates home and auto insurance at an income base rate.
According to Kroger (2007) Foreclosures are set in their values and commitments that they learned from their parents and family without any attempts to find a different path (p. 64). Mary Ann has been immersed in her family of males since the age of three. They were farmers in Georgia, and they were farmers in Minnesota. Mary Ann was taught about hard farm labor, poor hygiene, and sex by her father and brothers. Being a little girl with no mother around a pack of men, her father and four older brothers, she only knew the farmer 's life and the ways of men. She’s dreamt about doing other things with her life and pursuing better things than the four walls of that pink and purple mobile home she’s grown up in and continues to live in currently, but because she is so set in her identity she refuses to change. When Guy offered to help Mary Ann move away from Flatwater and the awful job at the potato factory, for a mere moment excitement danced across her eyes but then she pulled herself back in and adamantly refused help, stating she moved around too much as a child and would never move her children, not even once, despite it meaning a possible better life and future for them. Guy then offered to give her money to buy a better home there in Flatwater, again she refuses, even when he offers it as a loan for her to payback. She screams at
Foreclosure in America has been a rising and prominent problem recently, and has destroyed many Americans hopes and dreams. Over 2.3 million homes were foreclosed in 2008, and an estimated four million homes will be foreclosed by the end of this year. Despite the efforts of many banks and lending companies, over half of homes will foreclose that have received their help. I believe that we have only started in the right direction in solving the foreclosure crisis. Giving money and lowering mortgage rates will help, but I believe we should find out why Americans are in this situation in the first place. We are being too stereotypical when we think the only reason someone is foreclosing is because of irresponsible payments or buying a home out of a person’s capabilities to pay for it. If we understand their situation, we will be better enabled to help and solve their crisis.
Statistics suggest about 32% of consumers are going to over estimate the rating on their credit, while only around 4% are going to under estimate the rating on their credit. Ones who will overestimate the quality of their credit are most likely less informative about finances overall, and will be more likely to have learned about their financial knowledge, unfortuanately, the hard way. Also the consumers who are going to overestimate the ratings of their credit will be less likely to properly budget, effectevely save their money, or learn to invest it often. With another example, in 1999 it was found that about 40 percent of mortgage borrowers didn't understand what the interest rates that were associated with their loans were.
It is normal practice for financial companies to charge consumers with credit history issues higher interest rates. It is justifiable because consumers with credit history issues that have had problems paying other creditors back in the past are more of a credit risk. Mortgage subprime loans are no different. Subprime loans become an ethical issue when financial companies use unethical practices to make subprime loans just in order to make more money.
Finding a mortgage can be just as difficult as the home itself. There are more mortgages than there are possible homes. There are many factors that determine the amount of the mortgage and the interest on it. Credit bureaus such as Equifax, TransUnion, and Experian determine if the person has enough credit for a home loan. An acceptable credit score ranges from 620 and up for a mortgage. This is a very important facet because a person’s score can change the rate of interest. Other important factors that decide interest rate are the types of documents presented to the mortgage lenders.
Buying a home is more complex then most think. A purchaser of a home doesn't pay in cash when buying a house. If that were so, then nobody would be able to afford one. A potential buyer must get a loan. The bank doesn't lend their money to just anybody, so there are prerequisites before a buyer should consider buying a home. The potential buyer must have enough money for a down payment which is 3% to 20% of purchase price, a steady job with for at least two years or more, must have a decent credit score with at least a 640 or better. That is standard for the market. (1) The credit score is based on the FICO score. FICO stands for, Fair Isaac Corporation, a company that has been in business since the early 1950's and monitors consumers' credit ratings and put a scoring system on it. (2) Conventional loans are usually financed up to eighty to ninety percent with a down payment required of ten to twenty percent. The potential buyer must also have a debt ratio not exceeding 28/39 of their income. The first number 28 refers to your new mortgage payment that cannot exceed 28% for your gross combined income and 39 refers to your mortgage payment plus revolving and installment debt as well as taxes and insurance cannot exceed 39% of you total combined gross income (3).