The economic crisis has become pervasive and no one is immune from its effects. Families are finding themselves in situations that they had only heard of others experiencing and are finding their circumstances spinning out of control and fast. There is an obvious need to assist families with real solutions now and fast. Mortgage companies are not quick to be compassionate or offer practical solutions to those who find themselves living paycheck to paycheck and then not having a paycheck and/or nothing in savings. Or maybe there is an accident, injury, or illness and medical insurance has been exhausted or none at all. Perhaps there is a separation, divorce, or death and no one to care for the children while the other is working. Maybe there is limited income and an unplanned pregnancy.
Realistic solutions are required so that problems are solved in the family and not made worse by being required to move and have late fees, higher interest rates, and/or finance charges. This can exacerbate the issue because the move may uproot the family out of the school district. It may limit access to public transportation. It may increase the distance from family members and other support people/resources. Either way, asking a family in financial crisis to move from what they consider home is not the answer.
Mortgage companies are quick to contact the lender if a payment is late and the mortgage company keeps an accurate payment history. There are obvious trends to people who may be struggling to make their payment. These trends may include frequently paying late or using the entire grace period regularly. Rather than making a phone call about a late payment, how about a phone call to discuss why the payment is late, help with budgeting, whe...
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The first session would be the comprehensive assessment, the second would be presenting the plan of action to the mortgagee family, the third would include follow up on the action steps and addressing any glitches. A six-month and twelve-month session would be scheduled to follow up. If the mortgagee does not appear willing to receive the help and no action steps have been made by the second session, discontinuation and fee for the services would be considered.
I believe that the wisdom from a trained professional, the personal care and interest given to the family, and the short and long term solutions that these resources provide make this a great option to the foreclosure problem.
hardship, the only option available to ensure that they can afford their monthly mortgage is to
...g them a chance for renewal. This renewal will allow them to correct the path they are choosing for their life and the lives of their family members. Sometimes foreclosures are the case because of how uneducated the citizen was on the problem and they did not know where to turn nor had nowhere to turn for guidance. If the citizen does not willingly take the suggested course, I feel the government’s action should be to take everything away. I’m a firm believer in second chances, but in order to get the second chance, the citizen must be willing to put forth an effort. If the agreement is broken then consequences will follow. I will leave with a quote I hear quite frequently from one of my high school teachers, “You can’t get something for nothing.”
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.
It’s hard when a home becomes a house: left with walls, stripped of memories. It’s disheartening when a family becomes a number: left with foreclosure, stripped of dignity. In 2007, over-extended borrowers began to default on their sub-prime mortgages; mortgages that increased as more and more families chased the American dream during the housing boom. The interest rates were “teasingly” low, but more detrimentally, they were variable. When mortgage rates were readjusted, homeowners found that they could no longer pay the upped monthly payments. Such sucked them in to the dizzying downward spin of heightened debt and negative equity. Such sucked them into the foreclosure crisis.