Solving The Foreclosure Crisis Of The United States

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.

I often used to watch a show called “Extreme Makeover” where a team of builders would come to a neighborhood, build a need worthy family a beautiful new home, and then just give it to them. “Wow! What a lucky family,” I would say. “How fortunate.” However, as time went by, that same family would be in the news again. Why? The house was in foreclosure. The people had gone to the bank and taken out a mortgage against the home, then spent all the money they got for it on other things.

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

According to Desmond, Arleen is not alone in her dilemma. A great many Americans are being evicted in light of the fact that they cannot pay the rent (Desmond, 2016,p 4). Like Arleen, many poor families are spending the majority of their income on rent and utilities. In fact, using estimates from The American Housing Survey (AHS), 1991-2013, Desmond finds that, in America, most poor renting families use over half of their income on housing; and, roughly one quarter spend more than 70% of their income to pay rent and utilities (Desmond, 2016, p 4). Aside from the fact that Arleen’s monthly welfare stipend of $628 has remained stagnate for years, housing costs have soared. Due in part to the foreclosure crisis, and the deluge of millennials into the rental market, the demand for rental stock has risen.(Sisson, 2016). At the same time, escalating building and labor expenses, and declining subsidies, have helped to slow new construction. Thus, demand for rental housing is exceeding supply, resulting in escalating rent prices. Furthermore, the razing of older public housing projects and defunding of government assisted housing has pushed poor families into the private rental market (Sisson, Patrick may 19, 2016). As a result, most poor families in America today live unassisted in the private housing market. In fact, in 2013, 67 percent of poor renter households did not receive federal housing assistance (Desmond, Matthew, 2015). One day, Arleen stopped by the Housing Authority

I really didn’t know much about foreclosure. So I did some research. I asked many people of many different ages from eighteen to sixty-two. A lot of people said,“ Just pay the bill”, but that is often easier said then done. Some said they got in over their heads and were not able to get out. Some also said that their income and credit look good on paper but did not cut it when it came to paying their bills. Some told me their income had changed due to losing their jobs or having a spouse pass away. There are many circumstances that are out of people‘s control. Attempting to gain some control over the situation often is better than just praying that nothing bad will happen.

When paying the commission of a realtor is no longer an issue, the seller is more likely to pass along the savings to the buyer and lowers the price of a home even more. Once both parties agree on a “rent-to-own” payment option, the potential monetary saving that is available to the buyer develops into realistic saving and also the development of investment.

The rent-to-own option is one that very desirable for potential home buyers as well as sellers. They are able to live in the home that they desire to own and all rent payments that are made are put towards to the future mortgage similar to a buying a car. The future buyers pay a certain amount each month to live in the house, and at the end of a set period -generally within three years- they have the option to buy the house. Each month of rent they pay is income for the seller, while a portion of it goes toward a down payment to eventually purchase the home. Both future buyer and seller need to be very clear about the

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.

One of the most important things that anyone needs is a place to stay. Having a home or shelter of some sort is a very important factor for living. Which is why the term “homeless” is used when directing towards individuals in poverty. Where am I going with this, one might ask? To elude the fact that staying in a nice decent home is part of living. I am currently a college student myself and know a think or two housing. Having a place to live and making sure that you’re home is collective in price, interest rates and etc. is very important

Although, I have not had to face the foreclosure crisis, I see it all around me since I am in Texas and we see it a lot. In my opinion, we can solve the foreclosure crisis with the participation of the lender and the banks to assist the homeowners in helping them to get back on track and hopefully be able to remain in their home and not have the home go into foreclosure. Most of the time when the home goes into foreclosure it seems to be a lot of heartache on most families and not to mention the additional work for the banks. It has to cost the lender more money since they have to deal with legal fees and trying to get the home ready to sell again. Many times the homes if they are vacant long enough, they will get vandalized and then

Our nation is indeed in a crisis in regards to foreclosures. I believe the approach to take to solution would be to thoroughly examine how the crisis occurred and resolve that situation. However, that would be a short term solution. I recommend that we also consider how to prevent the situation from occurring again, thus presenting a long term solution. Let us look at the components of the current matter at hand by defining what is what.

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 economic crisis that has occurred in the recent years and that has consistently worsened over past year or so has led to many other problems, one of which is the foreclosure crisis. More and more people are losing their homes due to job loss or simply poor financial choices. The number of unemployed and homeless is increasing at an alarming rate. Many feel like there is nothing that can be done to remedy the situation, especially when the enormous debt that the United States has already accumulated is considered. There is not just one simple step that can be taken to fix this serious problem, but there are a series of things that the government and financial agencies can do to help gradually improve the situation, including more

The “rent-to-own” option is one among numerous other options that are meant to help new or returning home buyers. This is how the process goes: the current owner of the home rents the home to the new homebuyer and each month the homebuyer pays an allocated amount. This amount goes to the homeowner that is renting out the home and towards the down payment of the home. After a certain amount of years the new homeowner(s) can purchase the home. This is a great option for those who do not want to commit too much at once or decide to change their mind later on. Plus, the buyers and sellers can negotiate on the amount of rent and purchase price of the home. The time that the home can be rented out is negotiable and the time frame for when the buyer can officially purchase the home is between one and three years. The amounts that the buyers and sellers agreed upon do not change at any

An alternative option to renting is leasing. Leasing is similar to renting in that neither mean you actually own the home or building. One main difference between renting and leasing is a contract. When you lease, a contract must be signed for an extended period of time. If you are fond of the area or home itself this is usually not an issue, but if a problem arises, there are concerning issues. With a contract signed, you are obligated to live in said home until the lease is finished, if you disregard the lease, penalties may apply. Although, this may be seen as a negative aspect, the owner of the property has the ability to personalize the lease to fit the leasee, which could lead to happiness for both parties. Like renting, leasing allows you to save money and build credit, which will allow the person to once again own their own home one day in the future.