Solutions to the Foreclosure Crisis Essay

Solutions to the Foreclosure Crisis Essay

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Clearly we have a mortgage and financial crisis in the country that we need to work together to resolve in a satisfactory manner for all parties involved. Lenders and realtors for years were pressing that the “American Dream” is owning a home in The United States of America. Those same people were also convincing people to buy a home above their financial means. Because of the financial crisis we have banks that have been taken over by the Federal Deposit Insurance Corporation, houses stopped selling, people were laid off in the financial industry, the stock market deteriorated, and realtors were not making any commissions because home sales stopped dead in their tracks. Worst of all people searching for The American Dream are facing foreclosure.
I think that we need to get back to basics as far as the mortgage crisis is concerned. During the last 15-20 years there have been too many mortgages given to people who do not have the credit worthiness nor the ability to pay the mortgage, taxes, and maintenance of the home. Realtors and lenders were so quick to make a sale for the commission that they did not take in to account whether the person buying the home could actually pay for the home in the long run. Those same organizations were quick to push jumbo mortgages to people that clearly did not qualify too.
Realtors were quick to sell homes promoting the approach that bigger is better. They also pushed loans that paid only interest charges and did not include payments for the principle amount. Another approach by the realtors and lenders was the lower mortgage payment with a balloon payment after 5 years. After a low mortgage payment, the homeowners were faced with huge 5-figure balloon payments that they could not pay. The ...


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...licans should accept full responsibility for this foreclosure debacle. The Federal deficit has continued to grow enormously with no realistic way to pay it down in the future for our children and grandchildren. We need to get this country back on a sound financial footing and we the voters should think hard about whom they elect in the 2010 and 2012 election. In my opinion, we need to get back to our conservative roots that this country was founded on and live by The United States Constitution that our ancestors set forth “We the people………”. Somewhere along the line, we seem to have forgotten the words and the values set up by our forefathers in The United States Constitution. Then and only then will we get this country back on track financially. Too many people now own homes that are clearly beyond their means and now face the tragic aspect of foreclosure.

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