Proposed Options for Ending the Foreclosure Crisis

An alternative would be for lenders to add a true customer service department which is not based on pay or get out, but is counseling based to keep Americans in the American Dream of home ownership. This would not only keep their customers for future business with new home loans, but would be noticed by neighbors and the community who are appreciative their home values are not decreasing. The lenders would counsel them through the sale by assisting them with getting the most they can for their home. By getting local community organizations involved to help with home repairs and curb appeal. Once the home is market ready and a dollar amount has been reached for these repairs the home owner will have to volunteer time and/or resources to assist another person going through the same situation. This would not only help the homeowner but will keep homes in the area selling at a fair market value and not bring down the values in their neighborhood. The assistance provided by the lenders and assistance from the community will help build their self confidence and make them feel like they are not alone.

I believe the foreclosure crisis will only continue and worsen until we understand the needs of the American public. Giving money is not the answer entirely. Each situation is unique and different from another. What works for one citizen may not be the solution for another. This is not only a financial situation but a social situation in my opinion. If he or she has a legitimate reason why they are in a foreclosure panic, such as death, divorce, sudden medical illness, or

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.

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.

This way the government could stabilize the market and only the houses at the top would be left unoccupied. These top tier homes could be offered for sale or for rent if a sale is not possible. A new loan could be made for the trade down, but the members of the family would be required to take a class on how to save and create financial goals.

The main goal the government should be focusing on is to reduce homeowner’s monthly payments, by enticing lenders to make concessions in interest rates that will make their payment affordable. This plan can keep families in their homes and would decrease the number of foreclosures. Providing a financial rescue plan without requiring

For those who had the unthinkable misfortune to lose their home and go through foreclosure, it isn’t the end. In fact, if they still dream of becoming homeowners again, it can happen. It may take a while, years in fact, but it can be done. The first thing a potential boomerang buyer (previous foreclosure victim in the process of transition to own property again) should do is to be educated on the recovery process after foreclosure. Foreclosure doesn’t necessarily begin the day you pack up, move, and turn over your keys to the bank. Foreclosure could literally take years after that. A foreclosure is listed on your credit report for seven years. It may be listed longer, but it can really only be held against you for that long. However, this doesn’t mean you have to wait seven years or longer after foreclosure to purchase property again. The time you have to wait will largely depend on the lender, the type of loan and your credit.

“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.

In order to fix the foreclosure crisis, the supply of homes on the market will need to be sold. My plan creates a team approach to achieving this goal. The team would consist of a realtor, an appraiser, a mortgage broker, and a homeowner. The realtor will complete a market analysis for the homeowner, and the appraiser will do an appraisal for the mortgage company. The mortgage broker will assess the homeowner’s financial situation to determine what they can now afford. The realtor will help the homeowners find a new home at a price they can afford. The mortgage broker will set up a new mortgage with new strict guidelines designed to help the homeowner succeed. The homeowner

As the economy drops and foreclosures are on the rise, millions of Americans who were financially stable several years ago are asking the same question, “How could this happen to me?” The crisis has occupied the minds of politicians, who are trying desperately to solve this problem, but the tragedy continues as more and more Americans are foreclosed on with no alternatives. The foreclosure crisis will not be solved by simply lowering interest rates, firing loan brokers, or other short-term, ineffective solutions. The long term solution to the housing crisis has nothing to do with housing. The government has lost its way and needs to redirect the way the whole economy is run.

The foreclosure crisis in our country has implemented a domino effect that may take years before we note any positive changes. As the country begins to heal, an effective process and/or program must be implemented that will reduce or eliminate foreclosures. It is important to remember that purchasing and maintaining a home is a part of the “American Dream,” and when working class families cannot seem to manage without loss of pride and dignity, then the dream begins to fade. The hopelessness and lack of self worth takes a giant step forward and brings with it anger and frustration which only damages families.

The solution to the Foreclosure Crisis is the implementation of continual, mandatory education classes that must be attended and passed, or penalties will be applied to the homeowners. A little tough love from the lender and the government is necessary. Just as our parents follow through and continue to teach us throughout our lives, so must the lenders and the government take the time to “sit” every homeowner down to make them learn and realize that being a homeowner comes with big responsibilities. Whether people are just on the verge of purchasing their homes or their foot is already close to stepping into the state of foreclosure, lenders and the government must take the time to really educate people about the responsibilities and

Solving the foreclosure crisis is not an easy quest. In order to solve the crisis, it will take everyone getting involved. The banks and other lenders need to be willing to work with people who have been in their homes and need to have their loans restructured or refinanced. There should not be any more QUICK FIXES. Too many of the lending institutions are trying to put a bandage on an open wound. Instead of working with the homeowners, they are willing to put the residents out of the homes and think that this will solve the problem. The only thing that does is leave the houses open for vandals to destroy the houses. Many houses are broken into. People steal the copper, fixtures and what ever they can carry out to make quick money.

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 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.