Solving the Foreclosure Crisis Essay

Solving the Foreclosure Crisis Essay

Length: 960 words (2.7 double-spaced pages)

Rating: Strong Essays

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The current foreclosure crisis that our nation is experiencing has become a great hardship on many people in America. People that have lost their jobs due to cut backs, people with families for whom they need to provide shelter, people who are otherwise very responsible but have been put in a position from which they cannot escape, these are the people that are suffering.
Normally if one could not afford to make payments on their mortgage, there would be ways for them to refinance their mortgage in order to adjust some of the payments. With this current foreclosure problem, this seems almost impossible. Not only are people becoming unable to afford payments on their mortgages but also they are unable to get themselves any help because as opposed to before when they could have refinanced their homes, their homes are now worth less than the loans that they actually need to pay off. So now people’s problems are simply snowballing until they are buried by the result.
People have become so desperate for help that foreclosure has become an increasing problem that it is not only affecting the economy but also society. At any time during the day one could see several commercials offering people financial help and advice on how to solve their foreclosure problems. But do these companies actually advertise something that they can deliver?
What people need help with in this situation are their payments; the payments that they were responsible about making prior to loosing a job or missing a payment that resulted in heavy fines or simply the inability to pay off what they owe. It will not help the lenders, the borrowers, or the economy if these people are not given some way to subsidize what they owe.
Although foreclosure is commonly ...


... middle of paper ...


... this was one of the initial reasons that these foreclosure problems started: with the large interest rates being charged by the companies who provide the loans, people end up owing significantly more than they borrowed in the first place.
Overall, President Obama has a good start for solving this crisis: help people refinance their homes and set limits to the size of their payments so that they are able to actually pay off their loans. The best thing to work on from there is what to do with the loans that are through independent lenders, instead of government run lenders like Fannie Mae and Freddie Mac. Instead of allowing these companies to selfishly hurt their customers more than they already have, the government should simply provide a way to take over those loans so that those people can also receive the large amounts of help that the government is providing.

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