For many people the “American Dream” is to own a house, one that they can start a family in and get married. In order to own a house there are many obstacles that one has to go through in order to come up with the funds to support their purchase. Most people cannot outright purchase a house without taking out a mortgage. Unfortunately a certain percentage have been affected by the downturn in the economy and lost employment, making it difficult to keep up on the loan payments from month to month which leads them to get foreclosed on.
Once their house becomes foreclosed on, they lose their house and become homeless if they do not find another house or apartment in time. With the economy in a recession this problem is becoming worse with people losing their jobs and having no money. The important thing throughout this foreclosure crisis is to keep people in their homes and not on the streets. This is a very complex issue to find just one solution that fits everyone.
One solution is that in European countries they are doing 50-100 year mortgages which would allow people to have lower monthly payments, but this is not yet a standard practice or popular in the United States.
For people who are losing their house another solution could be taking in an elder to care for, for a fee. Many elders are put in nursing homes because they cannot live by themselves and they have no family to take care of them anymore. The government could set up a system where someone who is in need of financial help, and qualified as a caregiver could take in an elderly person to care for, in return they will receive an amount of money to help with their mortgage and medical and food supply for the elders. In 2009 the costs ranged from $50,594 in Louisian...
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Of Course the people who are taking in the elders would have to have a thorough background check and will have to be informed on any of the elders needs to survive including medication needs and other things. They would also need to possibly go through some basic training possibly twenty hours of standardized training. Even with this training some elders need additional care. Even if they had to have a nurse come to the home once a day it would still be a lot cheaper than a nursing home. Adoption agencies could be sourced to perform checkups and ensure that the environment is safe for them.
This proposal is a win-win situation for both parties. It is also extremely cost effective for Medicare, Freddie Mac, Sally Mae, and private mortgage lenders. Sometimes the best solutions are common sense and this strikes me as one of those situations.
from happening again"? cannot be answered in one definitive statement. Of course the solution to preventing home foreclosures is "prevention," which in itself comes with a lot of variables. Background Information As of December 29, 2009, the website Foreclosure.com reported that over 2.2 million homes in the continental USA are in some form of foreclosure, 486,323 are in pre-foreclosure and 465,490 have already been foreclosed. Over seven hundred thousand have tax liens against them and 87, 389 have
The frequency of foreclosure in our nation today is dangerously high. The strain from the recent economic downturn has put many families and individuals in a financial chokehold preventing them from being able to make their monthly mortgage payments. Consequently, many of these people feel they’ve punched a one-way ticket to foreclosure. With all these homes being foreclosed on, we face a very real crisis. The best way to solve this foreclosure crisis is preventing homes from foreclosing one house
or in foreclosure. Add that to the previous four quarters and that is eight point seven (8.7) million homes in crisis. (Further on known as HIC's) The United States “Bail Out” helped major mortgage corporations, and their chief executive officers (CEO's), but not the families that are in, or were in these HIC's across America. If the Federal Housing Authority (FHA) and the United States Treasury Department would implement some radical new programs to help the people affected by this crisis, not
How would you react if someone had told you on the streets of Battery Park City, Lower Manhattan, “Make a wish, and your wish will turn into reality?” If luck by chance you had wished for owning a property at Gateway Plaza, a high-rise apartment complex on Battery Park City; your wish is just 1 millimeters apart. Inside the article, by Daniel Trotta, “Buyers rejoice: Manhattan home prices finally fall,” Trotta stated Manhattan brokers kept on stating prices are going up, while the prices were actually
I was a home owner who lost a home to foreclosure in 2011. I purchased a home for my brother who is learning disabled. Initially when I bought the home for him he had a roommate and knew he needed to keep the roommate to make the payments. After about a year, his roommate moved out and I had to pick up the remaining $600.00 which was very hard to do. I was able to make the payments for about 3 years but then I could no longer afford it. I was in the middle of a modification with Wells Fargo
happened with our nation’s recent wave of foreclosures. Loans have led everyone to believe that they can own a home and it has omitted the practice of saving. That is where the beginning of the solution lies. Our nation’s people need to relearn the value of patience, therefore we need to learn how to start saving again because although loans may pave a way toward homeownership, it is not valued as much compared to someone who has saved for a home. Foreclosure is defined as “The legal process by which
Foreclosure in America has been a rising and prominent problem recently, and has destroyed many Americans hopes and dreams. Over 2.3 million homes were foreclosed in 2008, and an estimated four million homes will be foreclosed by the end of this year. Despite the efforts of many banks and lending companies, over half of homes will foreclose that have received their help. I believe that we have only started in the right direction in solving the foreclosure crisis. Giving money and lowering mortgage
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Posing the problem of solving the foreclosure crisis first begs the question – “is there really a foreclosure crisis?” The country is certainly in crisis, but the crisis is not being caused by mortgage foreclosure. Foreclosure is simply a mechanism for people to deal with a debt they can no longer afford. Rather than being a crisis, the potential onslaught of home foreclosures (which has been slowed somewhat by the Obama administration’s “Making Home Affordable” program) is actually market forces
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happens when a recession falls upon the country? Will the people of America survive? In Richard Florida’s article “How the Crash Will Reshape America”, he explains the different approaches America can be transformed to help them out of the economic crisis. Although Florida presented different solutions to help get through the times of the recession, the housing market whether we are considering new construction or renovations on existing homes, will lead a path to aid us in lifting the release of the
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Subprime Mortgage Crisis Concept Background Subprime mortgage crisis is my preferred topic of discussion. The reason behind taking this topic is that housing is a basic need thus everybody needs it irrespective of the financial situation he is in. In this regard, the idea of subprime seems to be the only way to meet this need in a more professional decent manner. The case of subprime mortgage crisis presents a nice area of study on how a country can solve a financial crisis that was not anticipated
rights to use the funds of his company, he started betting against the housing market by suing more than $1 billion of his investors money into credit default swaps. Burry, along with other investors cashed in on the investments when the financial crisis hit the economic sector in the United States. The movie, The Big Short, came out in 2015 and was made based on true events in the book by Michael Lewis, 2010. One good thing about the