If the homeowner is unable to make payments due to the economic situation, it is still the homeowner's responsibility to pay them, however; the bank also took a risk when they loaned the money out, so it is also the bank's responsibility to ensure that the rate at which the money is paid back is viable for the homeowner. This can be done only by communication between the bank and the homeowner. It is necessary for the two to adjust the terms of the loan in a favorable manner for both parties. If a homeowner cannot meet the terms set in the loan, then neither the homeowner nor the bank is benefiting. Furthermore, homeowners need to bolster up their courage and actually talk with their lender. Many times homeowners are too afraid or embarrassed about their economic situation to go and speak to their lender about it. If a struggling homeowner doesn’t go talk to the lender about their situation, then there is no hope for it to get better. The bank is essentially making an investment in a homeowner when they give them a loan and therefore it is the bank’s responsibility to ensure that that investment is carried through to the end. Not only is it the bank’s responsibility, but it is also in their best interest as it is expensive for the bank to own the proper...
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...deral government to absorb their losses. Obviously, the homeowner would be required to pay as much as he or she could, however; the homeowner should not be held accountable for the money that is left over after selling their house, and it should not affect their credit rating.
Although the foreclosure situation in our country may seem too daunting of a task to tackle, I firmly believe that Americans can do anything when we put our minds to it. We need to support each other and look out for each other in the present economic situation to ensure that we all make it through okay. Lenders need to be more flexible with the terms of the loan, and support the homeowners. Homeowners need to be honest with their lenders and fill them in on their economic standings. Communication between the lender and the homeowner is truly the only way we can turn this situation around.
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