The crisis facing our nation cannot be solved by short-term thinking, nor can the housing issue be resolved by a determination to spend more money to hope for a better market with lower prices. Ensuring that interest rates stay low does not in any way ensure that foreclosures will decrease; neither does it dictate that they stay the same or even rise higher. A low interest rate is a wonderful feather in the hat of the prospective buyer at present, but it will do nothing for them in the future if they have little or no money in reserve to fall back upon when a financial crisis, be it large or small, invariably wanders into their lives. One broken water heater or an unexpected flat tire can be enough to make many families one payment late on their mortgage, and even falling behind on just that one payment can become very difficult from which to recover. The issue of the foreclosure does not hinge on loan forgiveness or loan assistance, rather, it hinges upon a family making firm, stable financial decisio...
... middle of paper ...
...f saving more than they currently do, and this applies regardless of socioeconomic status. Fiscal responsibility may take several generations to truly take hold, but once it does, it will resonate beyond mere salary lines, and when applied individually, personal gains will result. A foreclosure or market crisis may never be completely avoidable, but the issue can be addressed through reasonable short and long-term solutions. These measures will require accountability and resolve on the part of those who require them, but the reward will be great. The American Dream may be splintered, but it has not yet been deferred. A house to live in, to raise a family, and to one day own is still a tug within the hearts of many in the United States, and with the appropriate training, education, and ethical and financial responsibility, this dream can yet be a reality for many.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- We are currently experiencing a financial pandemic in the form of bank foreclosures. First, I will discuss major causes for foreclosures, then the impact of foreclosures and, finally, I will suggest possible options. The basic cause for foreclosures is that people are unable to make mortgage payments. There are two major variables to this pandemic: loss of income and excess debt. Many people lose their incomes due to employment layoffs or disabilities causing loss of employment. Another reason that people are unable to pay mortgages is due to mismanagement of funds and excess credit card debts.... [tags: real estate, economics]
1077 words (3.1 pages)
- Hard times lie ahead of us, and yet our best days are still to come. The purpose of the present paper is to elucidate the nature of the present foreclosure crisis, to examine its causes and to discuss possible recommendations for resolving an ever-growing rash of foreclosures, and to nurture a real, lasting recovery. Thousands of personal and family foreclosures are occurring every month as millions of people reorganize their lives. Countless banks have failed and continue to fail, albeit quietly as very few individuals in media are discussing the continued closures and takeovers.... [tags: economics, real estate]
2290 words (6.5 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)
- Have you had a home foreclosed on in the past few years. Were you forced into a short sale to sell your home. Was there a bankruptcy. Are you now wanting to know if you are able to buy again. Congratulations, you are a Boomerang Buyer. According to Reality Trac, Millions of Americans who lost their homes during the foreclosure crisis are now poised to become homeowners again. They estimate that 7.3 million so-called "boomerang buyers" will return to the U.S. housing market over the next eight years.... [tags: Mortgage, Real estate, Subprime mortgage crisis]
1113 words (3.2 pages)
- Affordable housing in the United States describes sheltering units with well-adjusted housing costs for those living on an average, median income. The phrase usually implies to applied rental or purchaser housing within the financial means of lower-income ranges specific to the demographics of any given area. However, affordable housing does not include those living in social housing owned by government and non-profit organizations. More specifically, the targeted range for housing affordability sets below 30 percent of a household's annual income, including all applicable taxes, utility costs and home owners insurance rates.... [tags: Income, Housing]
1080 words (3.1 pages)
- In 2008 the housing market took a turn for the worse and many lending agencies such as: Freddie Mac and Fannie Mae knew that the unusual surge in home buying was going to eventually come to an end. In 2008, banks in the U.S. repossessed more than 850,000 properties and about 404,000 properties in 2007. Countless family’s loss their homes because they were approved for a mortgage that they could not afford after the economic downturn jobs were loss and banks foreclosed on countless homes. As of today, the housing market is on the upturn and the victims of the foreclosure crisis are beginning to find new hope.... [tags: Subprime mortgage crisis, Mortgage]
1181 words (3.4 pages)
- Resolving the Foreclosure Crisis Program The current economy has made it difficult for families, especially those that purchased their property during a fruitful period, to continue to afford their homes. Many Americans are suffering the loss of employment and other financial hardships, which make it near impossible to stay on top of mortgage payments and continue to survive. At the same time mortgage companies have been hit hard with no real end in sight. For a lending institution to take over a property, or foreclose, is a costly endeavor and one that is devastating for both the lender and the homeowner.... [tags: Economics]
1066 words (3 pages)
- The foreclosure crisis is a huge problem in this country which not only has a negative effect on the homeowner, but lending institutions and the economy as well. This crisis is the result of a combination of poor lending practices on the part of the financial institutions, uninformed or misinformed borrowers making decisions based on inaccurate or incomplete information and a housing market frenzy that was driven by the economically unhealthy low interest rates. These interest rates encouraged the average American to spend, but not save.... [tags: US Economy]
1324 words (3.8 pages)
- Reading about the “Global Financial Crisis” and the “housing bubble,” a lot of things come to mind. I remember sitting in school, hearing teachers and adults talking about the financial crisis, but not really knowing what it meant. I remember hearing about other people’s parents being laid off or having to move, but never experiencing it myself. The little bubble of my world was secure, and no one explained to me what was really going on. Until high school. In high school, I took a financial literacy class.... [tags: Subprime mortgage crisis, Mortgage, Money]
1167 words (3.3 pages)
- ... In the 1990s, the federal government desired more people to own homes in the United States and lenders were urged to make home loans more attainable for a wider consumer base (Melicher & Norton, 2014, p. 168). Banks were now relaxing credit and income standards for mortgage loans. Lending Practices Lending practices were one of the most significant contributors to the housing bubble and subsequent crisis. Up to this point, banks and other lending institutions were very particular about the creditworthiness of the individuals to whom they would lend money.... [tags: market, housing bubble]
1640 words (4.7 pages)
- Solving the Foreclosure Crisis
- Solving the Foreclosure Crisis Caused by Slated-Income Loans
- Job Expectations and Popular Jobs
- Solving the Foreclosure Crisis: Require an Economics Class to Graduate High School
- Proposed Solution for Solving the Foreclosure Problem
- The Online Home-Sharing Solution to American Foreclosure