Solving the Foreclosure Crisis Essay

Solving the Foreclosure Crisis Essay

Length: 1510 words (4.3 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

Economic missteps of various forms have pushed the United States and the entire world into one of the worst recessions in history. One symptom of that recession has been an onslaught of home foreclosures, the problem that this essay will address. There is no question that these foreclosures are detrimental to the health of the overall economy, but solving the problem solicits a variety of opinions.
In the October 2009 COP report, An Assessment of Foreclosure Mitigation Efforts After Six Months [1], it is shown that the cause of home foreclosures has changed somewhat since their initial report in March. At the beginning of the foreclosure crisis, many of the problems were driven by the unwise handling of various situations and financial instruments by both borrowers and lenders. At this time, most of the solutions focused on finding ways to modify existing mortgages to make them affordable for the homeowners and mitigate the results of the imprudent decisions that had been made. Now, the leading cause of foreclosure is the loss of employment and is happening to both prime and sub-prime borrowers.
According to the Congressional Oversight Panel's March 2009 report, Foreclosure Crisis: Working Toward a Solution [2], any viable solution to the foreclosure crisis must have several components. It must:
• Result in modifications that create affordable monthly payments
• Deal with negative equity
• Address junior mortgages
• Overcome obstacles in existing pooling and servicing agreements that may prevent modifications
• Counteract mortgage servicer incentives not to engage in modifications
• Provide adequate outreach to homeowners
• Be quickly scalable to deal with millions of mortgages
• Encourage widespread participation by...


... middle of paper ...


...olve other pressing problems like the impending water crisis by building relevant items like giant reservoirs or nationwide pipelines.
Overall, solving a problem as complex as the foreclosure crisis is not a simple task, but important progress can be made if wise decisions are implemented. However, there is always a danger inherent in all change which is that the effects of the change might be more disastrous than the initial problem. Thus, as is accomplished in this solution, any changes to be made should be free from detrimental side effects or reduced freedoms. With the simple steps of changing the rules for conforming loans, administering a competency exam for borrowers, and spurring job growth through high profile public works projects the foreclosure crisis can be solved and America will be left with a future that everyone can be proud to leave to posterity.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay Proposed Options for Solving the Foreclosure Crisis

- Economics, we as a group have responsibilities to ensure there are checks and balances. The statistics are over whelming. Who should be foreclosed on, who are making an attempt to continue payment. Lenders whether they are a bank or mortgage company need more compassion not greed. Are the homeowner’s really bad people or people of misfortune. What are the available options, where can a homeowner go to receive them. Those who are irresponsible, non responsive should be held accountable to go forward with foreclosure and commend those who are responsive and responsible with compassion....   [tags: foreclosure, economics]

Powerful Essays
977 words (2.8 pages)

Solving the Foreclosure Crisis Essay

- The foreclosure crisis is a very sensitive issue that needs to be acknowledged urgently. This particular issue has put a lot of people in danger by losing their homes. When being in a predicament like losing one’s home it is all about responsibilities. Once a person has been notified that their home is in the process of foreclosure and they only have but so little time to pay their mortgage, this is when compromising comes into action. It is imperative that needs come before wants when in a position of foreclosure....   [tags: Foreclosures, ]

Powerful Essays
961 words (2.7 pages)

Essay on Solving the Foreclosure Crisis

- Solving the foreclosure crisis will not be an easy task. I believe there is no quick fix or sure solution to fix this far-reaching crisis. There are however, steps that every individual involved in the foreclosure crisis can take towards improving the situation. People that the foreclosure crisis does not directly affect should still rethink their lifestyles as well, so that the crisis does not continue to grow. The bail outs given to the banks were a candid approach to preventing the banks from failing, but there were still thousands of Americans failing as well....   [tags: Foreclosures, ]

Powerful Essays
985 words (2.8 pages)

Solving the Foreclosure Crisis Essay

- 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....   [tags: Foreclosures, ]

Powerful Essays
960 words (2.7 pages)

Essay about Solving the Foreclosure Crisis

- The first step in solving the foreclosure crisis is to stop lending money that we cannot afford to pay back. Lenders are greedy and they just push people into loans that are too much for them to handle. Once the lending portion is under control then we must take care of the current problems, which are all the people that currently have the loans that they can’t afford. Stop lending too much money. A person should be able to make the monthly mortgage payment with one and a half weeks to two weeks of paychecks....   [tags: Foreclosures, ]

Powerful Essays
902 words (2.6 pages)

Essay on Solving the Foreclosure Crisis

- The foreclosure crisis is completely out of control. Everywhere you go, there are foreclosed houses to your left and right. The only plans that there are for putting an end to this crisis have a very small picture of the crisis in mind. These plans only deal with helping people that are in an immediate danger of having their house foreclosed on. The help that they offer only puts people out of harms way until they have to make payments later. Many people simply can’t pay the bills that they have in front of them....   [tags: Foreclosures, ]

Powerful Essays
945 words (2.7 pages)

Solving the Foreclosure Crisis Essays

- Throughout history Americans have experienced many different crises. Today, one of several crises that are affecting the United States is the foreclosure crisis. I believe Americans are experiencing the worst foreclosure crisis of all time. The foreclosure crisis has been brought on by numerous factors, such as the state of our economy, job loss, and taxes, not paying mortgages, and lastly, owing the IRS. December 2007 is when Americans started to face some tough times. Many people were losing jobs and being laid off....   [tags: Foreclosures,]

Powerful Essays
1113 words (3.2 pages)

Essay on Solving the Foreclosure Crisis

- For many Americans, the foreclosure crisis was a news story on TV. For others, the crisis was a national problem to be pondered “in theory.” In my case, however, the foreclosure crisis was personal and real. In 2003, in the midst of closing my failing African American bookstore in Denver, I defaulted on my home mortgage – finding myself the target of a foreclosure process, but also of predatory lenders and investors prowling my inner-city, gentrifying neighborhood. I avoided foreclosure by agreeing to a modification plan with my bank....   [tags: Foreclosures,]

Powerful Essays
2068 words (5.9 pages)

Solving the Foreclosure Crisis Essay example

- How do we solve the foreclosure crisis. This question has been plaguing many people who are smarter and better educated than I am. But to them this is just an academic question, since they have probably never faced the problem of which bills to pay or whether or not to go to the doctor or fill a monthly prescription or pay the mortgage. For a lot of Americans these are the choices that have to be made each paycheck. To solve the foreclosure crisis we must help these people to pay their bills and have enough money to continue paying their bills....   [tags: Foreclosures,]

Powerful Essays
1034 words (3 pages)

Solving the Foreclosure Crisis Essay

- I have always been taught that education is the key top solving almost any problem. The current foreclosure crisis is not any different. There are many reasons cited as to why this crisis happened. Some reasons are obvious whereas other may require inside knowledge of the actual mortgage approval process of individual banks. Greed has been cited by many as the most obvious reason. Greed on the part of the banks, realtors, loan officers and yes even homeowners. Homeowners who wanted to get much more house than they could afford just because someone approved them for it....   [tags: Foreclosures,]

Powerful Essays
1061 words (3 pages)