Proposed Solution to the Foreclosure Crisis Essay

The government's attempt to stem the tide of foreclosures and arrest the incredible fall in home prices have been, in a word, pathetic. One proposal suggested was for banks to offer low 4% mortgages -- a step in the right direction. But in extending support to buyers of homes, it completely ignores the problems of millions of families that already have mortgages. As a result, it does little to halt the surge in foreclosures. With more home owners likely to default this year, the situation is far from recovery in spite of a wall street surge since March of this year. The new rates, and lower monthly payments, would be especially helpful for homeowners with negative equity (they owe more on their mortgages than their homes are worth). Such underwater borrowers, prime candidates for

Too many Americans have fallen victim to the crisis that has become the norm for our citizens these days. Lenders no longer want to work with individuals who have gone through the foreclosure process and for many it is not only their homes they lose. Some have lost their jobs and/or families, others fall into a deep depression and worst of all some have taken their own lives.

There is by no means a simple solution to solving the home foreclosure epidemic but there are many changes that can be made to help Americans across the globe. The first, I believe starts

There are many interesting proposals to help homeowners who are in the process of foreclosure. Just recently, before the election, Senator John McCain proposed to the Treasury to spend $300 billion to purchase troubled mortgages at face value and then the “Federal Housing Administration would issue a new, federally guaranteed 30-year fixed-rate loan, based on the property's present value, at a "manageable" interest rate” (McKinnon, 2008). Under McCain's plan, the government would pay for the loans and take the whole loss rather than putting the responsibility on the lenders. His plan carries large benefits for the homeowners, but it will decrease

Foreclosure is a dangerous issue that has swept our nation in the last few years. Americans are losing their homes due to jobs being lost, home values falling, and banks lending out more money than homeowners can afford. Despite the multitude of issues that arise out of foreclosure, the main problem at hand can be almost solely traced to the economy. The recession has put many people out of work, made taking out loans more difficult, and has caused a nationwide panic. Therefore, to completely solve the foreclosure problem, it is necessary to trace the issue back to its roots, being the economy. This would take fifty pages to discuss, so this paper seeks to solve one aspect of foreclosure. Refinancing is an option that has become

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

For the last several years, the one issue that has been bringing the United States into a state of trouble that it has not been seen since the great depression has been the monstrous Foreclosure problem. Thousands of people have lost their houses. Thousands of people have faced the dangers of debt and chaos. Thousands of people lives have been ruined because of the mistakes that Americans have done in this nation. In order to solve the problem, one must take a look at how it started and how this depression began. Around eight-nine years ago, the market in housing caused many people to chase after it. This caused a mistake of creating a domino affect that has hurt banks from lending out the high amount of money to people and finding out

In unison with freezing foreclosures, new jobs need to be created. The President needs to work with Congress, and leading experts to set up a work program in which tax-dollars trimmed out of the budget are allocated to the Refurbishing of American Infrastructure. Our roads and bridges should be repaired, our water and sanitation systems should be made state of the art, and significant incentives should be given to private companies to build Nuclear power plants and windmill arrays across the nation. All these things are fully feasible, and would provide jobs for thousands of unemployed Americans.

without a home and in financial straits in the aftermath of the 2010 Foreclosure Crisis. However,

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

However, the bailout plan as of today needs some modifications. Instead of only concentrating on buying bad assets from financial institutions and banks, it should pay more attention to homeowners. The assets that the government plans on buying are mostly impaired mortgages –related assets that have fallen because of the housing sector and knocked holes in firms’ balance sheets. Therefore, if focused on homeowners, this problem can be dealt with from the beginning. It will reinstate up to 80% of the $500 billion already written off by Wall Street as toxic loans. This way, the government will put in $500 billion and instantly get back the $500 billion. It will also refinance 100% of loans, thereby giving banks 100% of value on corresponding securities instead of the 30% to 50% if securities would be sold to the government. Furthermore, refinancing homeowners will stabilize the entire real estate market and create a 30% to 70% greater monetary return since taxpayers now own these mortgages.

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.

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

The current issue of home foreclosure is based off of a long series of bad loans to people who were not able pay those debts off. Based on nightly news reports over the past year, it appears that the majority of these foreclosures are on very modest homes. My solution to this problem is to invest in those homes using green technology.

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.