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
There are many reasons a person can end up in foreclosure. Many people were victims of predatory lenders, whom they trusted to have their best interests at heart. These lenders misled homebuyers and helped them achieve loans for purchases that were beyond their budget.
There are three aspects to the damage done to homeowners in the recent foreclosure crisis. First, their credit ratings were damaged. Second, their personal financial situations were damaged. And, third, their investment confidence was damaged. All three aspects of homeowners’ post-foreclosure stress disorder have to be addressed before boomerang buyers will be ready to return to the mortgage market.
They thought that if the bank loaned them the money, they must be able to afford it. When their mortgage payment increased, they could not afford to pay the higher amount and the foreclosure process began yet again.
For those who are not yet fully ready to commit to another mortgage, there is an option of “rent to own.” This option is more flexible as it allows the signers to lock in the price of the property but decide at a later point on whether or not he or she is to buy the house. At the signing one submits a non-refundable deposit, option fee, which is then added to the down payment if he or she chooses to purchase the property when the time comes. The tenant then lives in the property he or she desires to purchase and pays monthly rent for it. This option can be a solution to many wanting to own homes but not being able to at the moment due to either poor credit, inability to pay the down payment, or hesitation coming from previous
Foreclosure is a dreadful aspect of home-owning. The American foreclosure crisis, and its subsequent economic recession, was caused by lateral misguidance on part of private banks, the federal government, and by the millions of people who purchased their homes on credit. Over 900,000 foreclosures have occurred in California alone, making its foreclosure rate the largest and most formidable; as a result of the housing downturn, private banks like JP Morgan and Wells Fargo succumbed to bankruptcy, as the toxic assets they possessed lie curdled and menacing. Stocks tumbled as confidence in our financial system crashed; millions of people lost their jobs in the course of one petrifying year. The lending process was halted, effectively stalling
Since the burst of the housing bubble, foreclosure practices had serious problems which left homeowners and the economy in a tizzy. Losing a home is not only stressful, but it does not bar you from owning again. After going through a foreclosure, a rent-to own is a perfect solution to get back on your feet and onto a road of recovery. By doing so, you are able to receive a monthly rent credit and lock in purchase price on a new home.
Properties enter foreclosure when the owner fails to pay his mortgage installment on time. However, in this situation, the lender takes the home under his custody to get his money. After selling the property, the lender recovers his loan amount.
Refinancing and / or re-modifying the current mortgage of the buyer in trouble are the obvious solution. The interest rates would have to be fixed rates that would be low enough for the buyers to stay in a favorable situation and not get delinquent. This would also help the homebuyer to make needed improvements or upgrades to their home if needed. Once this solution is in place, someone would have to be able to control the procedure and make sure that everyone is in compliance with what they are suppose to be doing. It would make no since, if this solution would take place and then fall apart because no one was doing the follow up on it. At this point, everyone would suffer because the buyer would still not get
The effects of foreclosure are far reaching. For individual homeowners, the foreclosure process may lead to loss of self-esteem and emotional distress (Schultz, 2009). Personal credit is also greatly affected by foreclosure. Poor credit may lead to a borrower’s inability to secure adequate credit in the future. At best, borrowers may have limited options for credit including extremely high interest rates. Further, a poor credit rating may be viewed unfavorably by current and potential employers as well as property management companies. Individuals who have poor or high-risk credit may have limited opportunities for employment and could have property rental applications denied (Schultz, 2009).
In the summer of 2008, my parents bought a condominium that had gone into foreclosure. Our goal was to “flip” the newly-acquired asset and make a profit. Since “flipping” houses was only a part-time job for my parents, I decided to lend a helping hand. I dragged trash out, demolished a ragged couch, and painted the walls. We transformed the property from a dirty dump to a highly-desired home that received multiple offers and was sold in two weeks. The previous homeowner had neglected numerous court warnings and finally had to be removed by police. Throughout the renovation process, I became increasingly interested in the United States foreclosure crisis and began pondering possible solutions.
The current foreclosure crisis in America has directly impacted thousands of homeowners who have lost or are losing their homes. It has indirectly affected nearly every American, as it is the underpinning of our current economic recession. In order to resolve this crisis, we first need to understand how we got to this point. With that understanding, we can look for solutions, and then try to prevent this from happening again. In regards to a solution, I have come up with three steps that could be taken to repair our nation’s foreclosure problem. We first need to reduce the risk of the loan to the lender, and then we need to increase the consumer’s buying power, and also work to make the foreclosure process more efficient.
The foreclosure crisis, which tragically happened several years ago, stole away the homes from countless Americans and left them high and dry. These Americans were not even neglecting to pay for their mortgage on purpose; the economy took a drastic downfall and took all of those unshielded Americans with it. Now, these Americans are left with many questions that are unanswered – until now. They still have the chance to improve their credit, test out their dream home, and thrive in the current reasonable home prices and interest rates. All the potential buyer has to do is know where to find that information and how to use it. Now, it is time to explore those tempting options.
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.
The foreclosure crisis, which is often termed as foreclosure gate remains an on-going conflict, which refers to the epidemic closure initiated by lenders and various large banks in the United States. The direct consequence of this foreclosure is linked with the spread of fear amongst the investors in the United States. A number of studies have also evaluated the increment in the suicide rates after the inception of foreclosure crisis. The crisis relevant foreclosure which glided over the nation years ago, served as a reason for forcing people out of their homes when the economy hit the set back. However, those victims along with the economy are recovering at a gradual pace. The emergence of the concept of foreclosure crisis leads towards the emulation foreclosure victims which are now transitioned into and categorized under the terminology of “boomerang buyers.” Amongst the various actions taken by the "boomerang buyers” involve taking their home ownership back. This essay will highlight the concept of “rent-to-own” and other options as buyer prepare to go “all in” on another mortgage.