Solving The Problem Of Foreclosure

Some of the renting and owning advantages and disadvantages that need to be considered are; The financial obligation. When you rent you commonly have a one year lease, or less, so you are only financially obligated to pay the agreed upon rent for a year, after that you have the choice of signing another lease, or moving somewhere else. When you buy a home, you are obligated for 15, 20 or 30 years. You can sell a house if you need to move, but selling a house is rarely a quick

Some prefer renting to buying because they believe that the renting might seem to cost less than buying a house. The tenants can possess a stable shelter without a high-cost per month, which provide the benefit to the renters within 10 years (Andriotis, 2014, p.4). Renting a

The foreclosure crisis has hit America exceptionally hard these past few years especially in California where the housing market is at its worst. California is also the worst because it is home to a lot of the most expensive properties. People are walking away from their homes because they cannot afford the mortgages or loans that they took out on their homes. The lenders are also to blame for this because they did not thoroughly look at them borrower’s credit and income to ensure that they would be able to pay it back. In some cases they would lend money even if the borrower had terrible credit. This has caused corporations like, Country Wide Home Loans, to be bought by other companies. A rather simple solution to this would be to

The last five years have been a rollercoaster for the average American homeowner. I personally know many people who were unable to keep their homes. Most of the reasons were extenuating- loss of job, decline in business, death of family- ultimately resulting in no longer being able to afford the mortgage. Unfortunately there were some very irresponsible decisions that contributed to the foreclosure of homes, for example, financing huge second and third mortgages to pay for frivolous activities and items. With the last half decade of hard lessons learned for previous home owners many are looking to venture into the market again with some more creative financing options. Many sellers are turning to options such as rent-to-own or seller carrying the contract with a down payment as well as buyers borrowing against existing retirement and life insurance accounts.

When people buy a home they have to pay extra amounts that are not covered by the actual price of the home. These extra expenses include down payments and closing costs. With the rent-to-own option buyers will only pay a security rental deposit and also have the choice of paying an option deposit as well.

“Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000…”

Buying a home can be an exciting experience for anyone. However, in some cases you just might be better off continuing to rent your home. There are many advantages to buying a home. However, it is not for everyone and buying varies from individual to individual. Currently more people are leaning towards renting but this could change in the near future.

The current foreclosure crisis is affecting everyone in this nation. If people are not experiencing the crisis firsthand, they hear about it through family, friends, and their other social networks. Nonetheless, it is impossible to escape because the media is constantly showing coverage about it. People are becoming more aware and seeing how expansive the impact is through television, internet, print, and radio. Americans are quickly realizing the impact the foreclosure crisis is having on the economy and the morale of this country. No one knows who to blame for this crisis, is it the government or the lenders or the borrowers? Therefore, I think the government has to be careful with any decision it makes to try and find a solution

In order to solve the foreclosure crisis, first we must identify and examine the reasons why people are going into foreclosure. The unstable economy which has led to the loss of thousands of jobs is the most obvious reason that people are foreclosing their homes. Without a stable and sufficient source of income, it is virtually impossible to pay back mortgage lenders. The first step we should take to solve the foreclosure crises is to create more jobs so that people can pay their mortgages on time. Its easier said than done, but who said it would be easy. The way to create more jobs and a moral society is through free college education. We spend billions of dollars building penitentiaries and fighting wars which to me is a waste of

With a "rent with option to buy" situation, the gap in time between setting up the contract and actually buying the house, it appears based on research that lenders fear that their buyer will be locked into a condition that may not suit them in the future. Interest rates may be low today but locking into the current rate could keep them from benefiting from an even lower rate in the future, or they could lose the money they set aside if they do not follow through on their contract to buy. One would think that the buyer could lock into a current market purchase price with this option but to the contrary, it seems that the owner wins on this detail as well, because the two parties guestimate as to the potential price the house would have 2-3 years from the forming of the contract, so I don’t see the purpose of this option as far as making it a win situation for the buyer.

When individuals request a loan to purchase a home they sometimes do so without a good strategy. Moving forward with such complex and shortsighted decisions without any financial planning can result in catastrophe for these people. Say average Joe has just graduated from college and has worked a couple of years. He believes he is now ready to buy a home. Without any experience in the matter he looks for guidance from a financial advisor, for example his banker, who has his or her own industry’s best interests in mind. Obviously some common sense should be played out through Joe’s mind about looking ahead in the future and weighing his projected possibilities and truly getting a grasp of his financial capacity. However, is it fair to put all the blame on average Joe who has no idea about how important the issue of buying a home is? This question is relevant especially

Another possibility that has become ever increasingly popular is the rent to own option. Rent to own is really a lease option, which means that the buyer gets the home now and pays monthly rent for a predetermined amount of

Since 2008 the United States has witnessed the dramatic collapse of the housing market. The housing bubble spurred by the loans that the banks gave to people, who could not afford those loans, and the interest rates on the loans, was changing each payment without reason. People started taking more loans, paying high interest, stopped saving. That affected the value of the homes. The rapid increase in the value of homes across the country for the previous decade, had been a falsity, in which billions of dollars funded by investments and home purchases were lost within a few months (Wikipedia.org: United States housing bubble). Millions of home owners were found to be unable to pay their mortgages,

As a freshman in college as the University of Arizona, I have not had my on my own experience with buying a personal home. I just write a check to the apartment complex, walk down to the slot with my three roommates, and say, “Done, another month paid for.” My father, however, is an investor and he has bought, fixed up, and re sold three homes. He is still trying to sell his last and final home. He has had some offers, but unfortunately the credit of the applicants is too low to buy his home. I will not deny that it breaks my heart, the potential buyer’s heart, and my father’s heart each time the bank calls back. It is unfair that my father, with four points away from prefect credit, could lose this home, and everything he’s worked hard for, due to owning his own business that, not so long ago, used to be booming.

The rent-to-own option is a middle of the road option that differs from both renting an apartment and buying a home outright. Instead, it involves a seller and buyer coming to a mutual agreement. This agreement involves the buyer paying a certain amount per month, plus an option fee,