Foreclosure Crises And The Foreclosure Crisis

Seeing other people reactions towards foreclosure helps me to develop a meaningful value of life and how to appreciate it everyday of my life. As I see what is going on around me I came up with three plans that can be executed to help all people who are dealing with foreclosure issues. This can become a major factor for the economy. One is called Own A Home , Financially Fit, and Bills To Kill. These are guaranteed plans that will help any individual that feels that they are not financially secured to become a homeowner. The Own A Home program is designed for aspiring homeowner in which they

The foreclosure crisis that took over the United States a few years ago left many people facing economic hardships. This crisis happened because there was a huge housing bubble that was unsupported by actual home values. The bubble began bursting in spring of 2008 and the crisis culminated in mid-2009. Many lenders went out of business and many home owners began losing their homes. When the government became aware of this problem and began to implement new programs, it was already too late for many homeowners. Those homeowners are not at a point where they might be considering buying a new home. The housing crisis has created new rules, regulations governing the mortgage industry, and has also created a new agency dedicated to consumer protection. This consumer protection agency is called the Consumer Finance Protection Bureau. These dramatic changes have helped to create more responsible lending. The improving market conditions such as low housing costs and competitive interest rates are allowing those affected by a foreclosure to become homeowners again. Prospective buyers have a multitude of programs available to them, so even those with less than clean slate have several options.

Foreclosure has hit so many people in the U.S. that now people feel like giving up. America is known for pushing forward and fighting for a better tomorrow, but now it seems like that tomorrow is only going to get worse. Fighting foreclosure starts in the home with the family. The parents are the ones needing to be a light in the children’s eyes and showing them a good way of saving could help them also in the future by not making any mistakes with their credit. Jobs are scares but getting any job period could allow some of the debt to slowly fall off. Even if it comes to having to sell your house, doing it the best way can only helps your credit which will help you in the long run when you are in need of buying another house. Letting go

Several years ago the economy in the United States took a real turn for the worst. It was one of the biggest economical down falls in history. Many people lost their homes toforeclosure when they became unable to make their mortgage payments. There are many reasons that people suddenly became unable to make their payments. As the unemployment rate increased from 5% in December of 2007 to 10.01% in October of 2009 (Bureau of Labor Statistics) many people lost their jobs. Another cause was that people had entered into bad loans with interest only or ballooning payment loans these types of loans were very common lending practice. Then when the housing market crashed people found themselves upside down in their loans, meaning that they now owed two or three times the value of their home. These are among some of the reasons people lost their homes. Now that the economy is starting to turn around and the federal government has kept the interest rates low.Is there any hope for all these people that have lost their homes to recover and own a home again?

There are several ways to work around these struggles. The first and most obvious method is to rebuild their credit report. This will make future loan request simpler; and they will have a higher chance of being approved for new credit cards. The second method is to pursue a rent-to-own contract. This pathway is easier for approval due to the fact that most of these types of contracts are done by the owner of the home. The third method is by seeking assistance from the federal government through the HUD program.

According to Scott Schang, in order to qualify one has to have undergone a 20% loss of income for a minimum of six months, the loss of income had to have resulted in an economic crisis such as bankruptcy, foreclosure, or short sale, there must be correlation between the loss of income and the hardship, and there must be evidence of recuperation from that hardship with 12 months of timely payments. Schang also states that after qualifying, one has to prove they have satisfactory credit and documentation of their loss of employment. After that, they must undergo housing counseling before they can be approved for the loan.

I really didn’t know much about foreclosure. So I did some research. I asked many people of many different ages from eighteen to sixty-two. A lot of people said,“ Just pay the bill”, but that is often easier said then done. Some said they got in over their heads and were not able to get out. Some also said that their income and credit look good on paper but did not cut it when it came to paying their bills. Some told me their income had changed due to losing their jobs or having a spouse pass away. There are many circumstances that are out of people‘s control. Attempting to gain some control over the situation often is better than just praying that nothing bad will happen.

After the United States suffered one of the biggest foreclosure crisis in its history, countless of American homeowners were forced out of their homes when the economy collapsed. In a slow and often painful recovery process, many are battling continued high interest rates and home prices in attempt to get back their families back into a normalcy of life. As a solution to the ongoing ownership dilemma that many currently face, the concept “rent-to-own” has come into the economic limelight. This resolution has started to be viewed as a realistic option to regain ownership and improve quality of life after the fallout of the foreclosure catastrophe through benefiting both buyer and seller of real estate.

“Shit happens” is probably what most of these foreclosed homeowners hear after they were forced to leave their comfy home. Even though the economy is unpredictable, not a lot of the victims are satiable by such a vague expression that has caused them to lose their property. It’s a harsh comment, but the economy has turned into something that we have little influence over. One of the worst feelings is having minimal control over the consequences and outcome. Some people are afraid to make the same home-buying decision again as a result, because what’s stopping the economy from taking another shit on them again? The answer is probably nothing, but what are some actions these homeowners can take to ease into settling down in a home again? Foreclosure victims can try to improve their credit score and it could get them that approved private loan in return if needed. Saving money is also a general option for those that tend to spend a lot on luxury retail goods. Another option can be utilizing the rent-to-own option to have that ‘homey’ feeling as soon as possible. Some people can also test their patience and attempt to wait it out until the economy exits the lavatory.

The last five years have been a rollercoaster for the average American homeowner. I personally know many people who were unable to keep their homes. Most of the reasons were extenuating- loss of job, decline in business, death of family- ultimately resulting in no longer being able to afford the mortgage. Unfortunately there were some very irresponsible decisions that contributed to the foreclosure of homes, for example, financing huge second and third mortgages to pay for frivolous activities and items. With the last half decade of hard lessons learned for previous home owners many are looking to venture into the market again with some more creative financing options. Many sellers are turning to options such as rent-to-own or seller carrying the contract with a down payment as well as buyers borrowing against existing retirement and life insurance accounts.

If someone knows they can no longer keep up with their payments then they can have someone come to their house and check out the condition it is in and average in the houses condition plus the amount spent to live in the house. Then give a percentage back to the person so they can afford maybe a cheaper home or an apartment. For example, if a house costs $30,000 and the homeowner has already paid $20,000 but they have become unemployed and can no longer make the necessary payments, instead of their home being foreclosed, someone can do an estimate based on the condition of the house and the $20,000 spent on the house. But if someone’s home is left in a poor condition then the money necessary to repair the house will be deducted from what they are suppose to receive back. This will decrease the percentage of homeless people while decreasing the percentage of foreclosure, also it is a more ethical thing to do rather then just taking someone’s home from them and leaving them to rot.

The first step is to improve your credit score. Most banks look at a 24 month history from the date of foreclosure. Apply for a loan, or credit card. Whatever type of credit received, make sure to pay on a timely basis. This will not only raise your credit but will also reestablish your credit. Lenders will want to see that you have had no problems for the next two years. Pay down your debt. Having large balances will not only lower your scores it will also increase your interest rate. Make sure there are no errors on your credit report, Try to avoid making just your minimum payments on credit cards, these are ways to improve your scores.

Brooklyn, NY – December 30, 2009 Foreclosures continue to rise drastically across the United States due to the recession, and have effected, and continue to affect thousands of families and individuals every day. One aspect we must take into consideration is that most people are not informed of what foreclosure means, or the process, even those who are homeowners. I believe that one step to preventing foreclosure is to educate first-time homebuyers. In addition, first-time homebuyer programs should not only assist potential buyers with financially preparing them to buy a home, but to keep the home once

The foreclosure crisis swept the nation affecting people of all walks of life. It may have had its deepest reaching impact on first-time home owners. I live this crisis each month when the mortgage comes due and we barely make our ends meet. As a first-time home owner, I was blindsided by varying mortgage payments. Furthermore, the processes in place that were designed to allow relief, only provided temporary respite from the stresses of home ownership. The stories among homeowners are likely very similar and the outcomes equally alike. The mortgage process is daunting and has ended in heartache and disappointment, leaving potential home owners to pursue alternate home-ownershipoptions.

Due to the recession, many households became financially burdened. As the economy suffered many people faced job loss or at the very least a decrease in income, therefore, leading to many foreclosures. Because of the impact a foreclosure has on one’s credit score, these individuals are not able to qualify for a new loan on another house. Fortunately there are other options in buying a house besides qualifying for a loan such as owner finance and rent-to-own.