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

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

Length: 1371 words (3.9 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

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.

1 -
2 -
3 -
4 -

Need Writing Help?

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

Check your paper »

Steps to Solving the Foreclosure Crisis and Preventing a Future Recurrence

- The foreclosure crisis is the worst seen by the United States in all of its history. The fact that thousands of people have lost their homes is a sobering thought. There are several reasons why foreclosures happen and they all point toward the mortgage companies, banks, the economy and the Federal Government. Still, finger pointing and blaming is not the solution. The time has come not only to fix the problem immediately, but also to provide safeguards to prevent it from happening again. This requires nothing less than a strong hand from the government....   [tags: foreclosure, economy]

Powerful Essays
1974 words (5.6 pages)

Proposed Options for Solving the Foreclosure Crisis through Public Awareness and Tax Break Incentives

- Foreclosures are a major problem, epically in today’s bad Housing Market, however with ever problem there come solutions. There is nothing we can’t fix. Fixing these problems with feasible solutions is what we must do. Currently the Obama administration is give tax break incentives from first time home buyers and its WORKING. The housing market has made a very remarkable recover from just one year ago, but as great as these tax break incentives for buying a new home do not encourage this first time buyers to make a smart home purchase....   [tags: foreclosure, housing]

Powerful Essays
979 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)

Solving the Foreclosure Crisis Essay

- 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....   [tags: Foreclosures, ]

Powerful Essays
1510 words (4.3 pages)

Solving the Foreclosure Crisis Essay

- How to solve the foreclosure crisis. Not an easy question to answer, nor is there a simple solution. I am among many skeptics of the notion that we can truly “solve” this crisis without addressing several systemic issues of the housing market. There is not a single solution to the crisis, but a myriad of different approaches that can collectively remediate the housing market. First, a few short-term fixes need to be implemented urgently in order to prevent the crisis from getting worse. Of priority is stemming the frequency of the foreclosures in the current market....   [tags: Foreclosures, ]

Powerful Essays
1123 words (3.2 pages)

Solving the Foreclosure Crisis Essay examples

- In today’s economy, foreclosure is a major problem that is only getting worse; statistics show that one in every two-hundred homes are will be foreclosed this year. At this rate, in the average American classroom at least one student’s home is at risk due to their parents inability to pay the mortgage. In fact, 250,000 families enter into foreclosure every three months. Due to lack of reasonable thinking and assets , forty-three percent of Americans spend more than they make every month. Fifty-two percent of Americans are living pay check to pay check causing them to be at risk of foreclosure....   [tags: Foreclosures, ]

Powerful Essays
982 words (2.8 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)

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 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)