Foreclosures: My Family's Experience Essay

Decent Essays
My parent’s have been fighting to keep their house ever since my dad lost his job over a year ago. They had been trying to pay the house off at a faster rate so had opted for a short term mortgage. Everything was going fine until the bottom fell out when the economy busted. They tried desperately to get their mortgage restructured before their savings ran out the first part of the plan, make an emergency refinance program and suspend DOC stamps and other fees so people who demonstrate need can reduce their mortgage payments before becoming delinquent. The federal government could make a program like they have for first time home buyers and give credits towards the refinancing of the loans. Diligently calling the mortgage company to try to…show more content…
With all of that stimulus money that the banks received, you would think the banks would be willing to help people out of a bad situation before it got worse. To make people go delinquent before beginning the help process if crazy. Honest people don’t seem to get a break. The whole mortgage restructure process took about 1 year. That is one year of making late and partial payments. If banks could move a little faster, I feel this step would reduce the foreclosure rates.
Part two of the plan could be to have an emergency suspension of credit card fees until the restructure is settled. I am not saying to forgive the debt, but if finance charges and late fees were frozen until people got their mortgages fixed, this would help. Once they new mortgage payments were established, people could then resume payment of their debt. Once people entered the emergency program, their debts could be consolidated into a workable payment. Forfeit of credit card privileges until that debt was repaid could be part of the program if necessary. Once again, if someone has fallen on hard times and can not afford their house, they cannot afford to charge either. To have credit cards continue to assess fees and escalate the debt is unrealistic. This would also help people from defaulting on this debt.
Part three of the plan would have to establish a quick processing of this program. It cannot take one year or longer to get
Get Access