Solving the Foreclosure Crisis: Problem of a People, Industry and Country

Solving the Foreclosure Crisis: Problem of a People, Industry and Country

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Owning a home is the primary tenant of the American dream which intern is surrounded by the fabled white picket fence, is filled by the quite impossible two and a half children, and occasionally a dog. Now, through numerous faults in the management of the housing and financial markets by key players in the private and public sector as well as major policy deficiencies the country is embroiled in a predicament unlike anything seen for generations. A perfect storm of easy money, lack of oversight, and a massive infusion of new homes have left housing markets around the country filled with surplus homes and owners by the thousands either defaulting on loans or walking away from houses due to loss of value. This leads banks to the inevitable fulfillment of their contract, foreclosure.
Today is November 20th of the year 2009, as this essay is flowing from fingertips to computer the market is in constant transformation and the driving news released hours ago on CBC News 1 was that one in 10 homeowners are behind on their mortgage. Unfortunately that 1 in 10 statistic is a national average; in some areas the situation is much direr. Destination states that experienced tremendous growth such as California, Nevada, Arizona, and Florida (where as of November 19th 1 in 4 is behind on their mortgage 2) are in a state of emergency. Many banks are holding off on calling foreclosures just to help control negative debt loads. Now the literal billion dollar question is how do you strengthen the foundation of the housing market and start building for the future?
The answer, from this perspective is a great deal of outside the box thinking combined with sacrifice all the way around.
First according to the FDIC 3 everyone loses on a forecl...


... middle of paper ...


... companies, banks and mortgages are bankrupting our people with fees. The only people getting richer are top percentage that own these companies, and then when they are partly responsible for the issue they get any money they lost back from the government, but who gives all the American people back all the money they lost? Most importantly what replaces all this lost “debt maintenance money” in local communities? The unfortunate answer is nothing, and if we keep down this road of ours, nothing is what we will have left.





References:
1 - http://www.cbc.ca/world/story/2009/11/20/us-mortgages020.html
2 - http://southflorida.bizjournals.com/southflorida/stories/2009/11/16/daily53.html
3 - http://www.fdic.gov/about/comein/files/foreclosure_statistics.pdf
4 - http://www.realtytrac.com/contentmanagement/pressrelease.aspx?channelid=9&accnt=0&itemid=785

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