Solutions to the Foreclosure Crisis Essay

Solutions to the Foreclosure Crisis Essay

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The foreclosure crisis is tearing away at this economy causing people to loose their house and be in national debt for long amounts of their life times. More people are filing bankrupt because they can’t afford to pay the adjustable interest rates that they set when signing loans for their houses. Now the economy is at a vast down turn, slowly turning up to becoming better internally, but still people are homeless due to their homes being foreclosed. These people can’t afford to pay these adjustable interest rates. When citizens go into sign papers they are not at a full understanding of what their interest rates are capable of doing and how they are capable of shifting up or down. We need to transition to a fixed interest rate use only.
I have a plan for America’s foreclosure crisis and it is spelled out like this lets stop with the shady (metaphorically) un-honest epidemic that loan officers continue to spread to the citizens, and lets teach these citizens about what they are signing up for. What is the good that comes from loan officers making a sum amount of money for the time being, while signing away the banks money to confused and soon to be befuddled citizens? To their (loan officers) dismay they will most likely end up having to pay back that money or be at risk of loosing their jobs due to banks closing. If these citizens were actually shown what these loans will do throughout the loans lifetime (all the ups and downs of the interest rates) then they might not sign up for them, knowing they will not be able to pay the adjustable interest rates that banks rise and drop ever so often. Due to these loans not being paid back the bank has to take their houses and now they are out of thousands of dollars, left with hundreds...


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...ld teach people what they are signing into, so that they know what they will be able to pay at a constant. Fixed interest rates for all loan seekers (to me) have become vital to solving the foreclosure crisis. This is how the crisis shall be solved to me. Banks and customers will be happy and overall becoming a win-win situation. Not for one second believe that the banks will be out of money they will still make the amount of money the people promised to pay ,Why? Because these people signing these loans know they can afford. The crisis honest will never be solved until they solve the unemployment crisis first. People need jobs to pay on these loans, they cant jus have a job one second and the next they loose everything, in order for this to be most successful is if we solve the job crisis first, but it still won’t hurt to do this in the mean time it will help some.

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