Solving The Problem Of Foreclosure

When someone is deciding whether to purchase a home, there are a multitude of considerations involved. Purchasing a home is usually the largest investment someone ever makes and they need to take into account the advantages and disadvantages between buying and renting.

Renting to own is a viable option for many financially-stricken Americans by eliminating the high costs of down-payments. Renting to own allows the seller to lock in a sale price while renting to another party, usually a small amount higher than a mortgage, but it allows the buyer to rent the house under contract until ready to purchase. The process keeps the seller from paying multiple mortgages without income, and it benefits the buyer by giving a viable alternative for home ownership instead of traditional

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

Renting to own can be a valuable solution to the boomerang buyer with tainted credit. The benefits far outweigh the other options for these buyers. During a 3 to 5 year period of renting a home, an individual’s credit can improve and open up possibilities of homeownership. This allows the potential homeowner time to prove they are reliable. Since a foreclosure stays on your credit report for 7 years the person is going to need a place to stay. With a “foreclosure” attached to their name they will not be able to hop into another house right away. This is the perfect window for someone to get his or her feet back under themselves while chipping away at owning another home.

First of all, the rent to own option is a superb option that allows the renters to apply the monthly rent to the purchase of the house. Renting to own, otherwise known as a lease-option, allow those people that are not in the

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 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 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

There are many benefits to the Rent-to-Own option, including living in and taking care of the home prior to purchase. While paying each month toward the lease purchase, the buyer can continue to improve credit history and begin to build equity in the home. The Rent-to-Own option is a great way to get into a specific neighborhood with the opportunity to purchase the home without the penalty of a large down payment or previous bad credit history. If the buyer has recently regained employment this option allows further building of employment history. While there aredisadvantages to every option, specific, and clear communication can resolve many issues up front. The major consideration in the Rent-to-Own option is the loss of rent credits and the option fee toward the purchase if the tenant determines that the home is not what they wanted. In addition, if the market changes and the fixed price of the home is higher than the market demand the tenant is contractually obligated to the agreed upon price. So as a

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

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

In 2007, a set of financial circumstances created an economic downturn in the United States. While the root cause of this downturn is still widely debated, one thing is certain, one of the results of this mess was that a large number of people who had been homeowners found themselves facing foreclosure and financial collapse on a personal level. Since that time, buying a home has become a much different proposition. Loans can be harder to obtain and those who once had sterling credit now face a great deal of difficulty obtaining a loan to buy a house. While there are a number of time-tested options that help people buy houses on a much longer timeline, one option seems to be gaining in popularity because of the benefits it offers. Renting

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.

The American Dream promises us prosperity for all people. As children, we are told to own a home with a spouse, 2.5 kids, and a dog. This symbolizes social and economical status. However, with the recent economy down spirals, unemployment reports are almost being overshadowed by reports of foreclosures, while sweeping our so called “American Dreams” and ownership privileges right out of our front doors. It seems that in a crisis no one person wants to take the blame for the other. The government is blaming the lenders, the lenders are blaming the borrowers, and the borrowers are blaming both the government and the lenders. The truth of the matter is the blame is not encouraging a resolution. The solution to a crisis of this