Foreclosure Problem

In the United States we face many issues such as poverty, death, health, and many others. But the issue that is currently effecting society the most is foreclosure. What is foreclosure? How has it effected society?. The definition of foreclosure is a legal or professional proceeding held by a lien holder which is a court order termination of equitable right of redemption amongst housing properties. Foreclosure has not just effected us financially, but has effected society physically.

It is evident that the housing deficit is just a layer of the many problems we are suffering from during the hard times in our economy. Foreclosure is indeed a horrific word that is haunting homeowners across the US. Because of the situation in the current economy, millions of Americans have been plagued by foreclosing on their homes and are left to find new location for themselves and their families to live.

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 rates will help, but I believe we should find out why Americans are in this situation in the first place. We are being too stereotypical when we think the only reason someone is foreclosing is because of irresponsible payments or buying a home

The economic crisis that hit the country took many jobs or people had their hours cut. With this situation happening, many people were finding themselves short on their mortgage payments and needing to go into foreclosure or having a short sale on their homes. Either option the homeowner chose or had chosen for them, they found themselves with poor credit and no way to become homeowners again. However, most wait times before was a minimum of two years up to seven years before that previous owner could be eligible for traditional loans.

potential homeowners to purchase their own homes. Loans that had at one point been impossible

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

When the Stock Market crashed in the late 2000s, millions were forced to leave their homes by means of foreclosure. Now, after many hardships, the economy is on the rise; and the housing market is making a comeback. Its previous victims are beginning to recover and start fresh in this young economy. The low interest rates and surplus of homes have made the once expensive houses more affordable to those who are seeking to restart. Although these “boomerang buyers” are able to afford these homes, their past record of foreclosure has hurt their credit score which makes it difficult to acquire loans in this cautious market. However, there are several steps such people can take and many methods they can

Banks now offer programs to help homeowners/homebuyers, but many times, these loans are often hard to obtain. The current programs have more stringent requirements that are unreasonable for distressed homeowners. In my opinion, the only way to rectify the foreclosure issue is to make a substantial change in how potential homebuyers and homeowners obtain loans.

Foreclosure is a heartbreaking process, but it is always possible to salvage something from the situation. If you can pay back the lender everything you owe, including back payments and penalties, then you can sell it before it is auctioned off. An experienced real estate agent can help you avoid foreclosure by selling your home and getting enough to pay your debts.

There are many reasons for foreclosure, including job loss, payment increase or mortgage adjustment, reduced income, along with many other reasons. What do these reasons have in common? They are all due to the bad economy and the homeowners cannot help these circumstances. Nobody would voluntarily choose to stop paying their mortgage, it would be unforeseen circumstances that arise that leaves one without enough to meet their payments. The borrower is left with no choice and clear solution. The borrower is just the outer surface of a deep problem. The problem lies within the system of lending itself. The system of credit that the U.S. relies on allows purchasing based on credit, or the ability to pay bills. Gauged with a credit score, one can increase this by paying more bills. Essentially, to gain a high credit score, one must incur more debt. This is where everything goes wrong. Though material wealth is increased, so is the debt. Unfortunately, people become so inflated with this false wealth that they take on more debt than they can afford. With their high amount of debt, or credit, other purchases including homes become easier. This adds a considerable amount to one’s already high debt.

There is no affect to your credit score and you can't default. You do not have to pay any of the money back either. According to John Zepeda at Rescue Capital, "we see individuals who are selling their future payments in order to avoid foreclosure. As a result of being unemployed, they fell behind on all their bills including their mortgage. Luckily, they can use their future payments to get the money they need without incurring more

It is always wise for anyone looking to obtain a loan for the sake of purchasing a home to develop a lucid perspicacity of the application process. When a person understands the process, they are less likely to become overwhelmed or intimidated by anything that occurs during the process. A person’s credit score will play a significant role in determining whether they are approved for a mortgage loan as well as determining the interest rate of the loan.

The United States economy has been in trouble for the past couple of years. The foreclosure crisis is a condition that began due to the inability of homeowners to pay their mortgages. Foreclosure is a legal proceeding whereby a lender obtains a legal termination of a debtor’s right to redemption. The foreclosure rates have been increasing for a considerable period and certain steps have been put into place to solve the problem. While the government, financial institutions and the general public are highly aware of the crisis, the steps taken to combat the problem are still not sufficient as the foreclosure rates are still increasing.

Analysis: But sometimes buying a house isn’t the best choice. It’s a long-term commitment that requires the homeowner to have a stable and secure job. If you default on your mortgage, for example being late on your payments or even missing payments the mortgage lender can take your home away. Then the lender can sell your home resulting as a foreclosure. Foreclosure also affects your credit making it harder or almost impossible to purchase a house in the future.

A foreclosure occurs when a mortgage company comes in and takes a house back from a borrower who has defaulted on his or her mortgage. The default is usually the case of them not paying their mortgage payment. Generally, mortgage company will begin foreclosure proceedings after a borrower has not paid their mortgage for two months.