Solving the Foreclosure Crisis Essay

Solving the Foreclosure Crisis Essay

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The foreclosure crisis has hit America exceptionally hard these past few years especially in California where the housing market is at its worst. California is also the worst because it is home to a lot of the most expensive properties. People are walking away from their homes because they cannot afford the mortgages or loans that they took out on their homes. The lenders are also to blame for this because they did not thoroughly look at them borrower’s credit and income to ensure that they would be able to pay it back. In some cases they would lend money even if the borrower had terrible credit. This has caused corporations like, Country Wide Home Loans, to be bought by other companies. A rather simple solution to this would be to change how “Alt-A” loans are given because these appear to be defaulted on the most. This is partly due to the struggling economy and companies having to cut back and let people go. After this the borrower’s could either, not afford to pay the loan back or felt that they were wasting money by paying it. Instead they just walked out and left the home to the bank. If they did walk out, this was a violation of the terms which some were not aware of or did not care. This carelessness then put the lender at risk because they had lent the borrower more than they could pay back and were at a loss.
Since we entered the Iraq War, we have been slowly going more and more into debt. I now feel that it has put us in way over our heads. If it weren’t for countries like China giving us money to pay our debt, we would be in even more trouble. We managed to temporarily fix the oil crisis in America so I definitely think we can overcome the foreclosure crisis. I personally think we should start bringing...


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...because business is business.
From what I have read and know, we need to change how “Alt A” loans are given and the terms that they are given under. The companies that give the loans need to take a closer look at the borrower’s credit to make sure they don’t walk out on them. The American needs to bring back our troops so we can stop spending so much money on the war. We could also use some of those troops to keep illegal immigrants out of our country and taking even more of the available jobs. Since we won’t be spending so much money overseas we can put more money into our economy. With the improved economy, jobs would be more abundant and people won’t have to default on their loans. Some families won’t even have to take loans out at all because they will be able to afford the cars and houses they want. This would make things a lot easier for all of us.

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