Solving the Foreclosure Crisis Essay

The mortgage crisis of 2007 marked catastrophe for millions of homeowners who suffered from foreclosure and short sales. Most of the problems involving the foreclosing of families’ homes could boil down to risky borrowing and lending. Lenders were pushed to ensure families would be eligible for a loan, when in previous years the same families would have been deemed too high-risk to obtain any kind of loan. With the increase in high-risk families obtaining loans, there was a huge increase in home buyers and subsequently a rapid increase in home prices. As a result, prices peaked and then began falling just as fast as they rose. Soon after families began to default on their mortgages forcing them either into foreclosure or short sales. Who was to blame for the risky lending and borrowing that caused the mortgage meltdown? Many might blame the company Fannie Mae and Freddie Mac, but in reality the entire system of buying and selling and free market failed home owners and the housing economy.

Foreclosure has become an outbreak affecting the entire United States of America. Realtytrac just reported in the month of April 2011 that one in every 593 housing units received a foreclosure filing. (N1) That statistic is for just one month! Some states such as Arizona, California, Florida, Michigan and Nevada continue to be plagued with an influx of homes falling victim to foreclosure or some other form of default. Each home that is a casualty to a foreclosure, short sale or even bankruptcy was collateral for the lender holding the promissory note. The consequences tend to come at a cost for the lender selling the property but a deal for the buying investor. The costs incurred and the losses experienced by the

The foreclosure crisis in Cleveland has imposed significant financial burdens upon taxpayers and area residents who have been forced to shoulder burdens that are rightfully the responsibility of borrowers, mortgage lenders and others that are direct parties to the mortgage transaction. Indeed, “the failure of borrowers and lenders

The foreclosure crisis is a problem disguised as many smaller problems: political, social, and economical issues to name a few. Just like there are several conditions that need to be present in order for a hurricane to form, several things need to come into play in order for foreclosures to persist. The economy’s generous desire to supply every family a home through zero down payment mortgages, the aspiration of a social classes’ need for status as being homeowners, and a city’s political structure’s greed for their cities to grow; are all in good intentions. But to sustain people in a city with a home and a healthy loan will require us to break down our old ways and construct a better method that will still allow families to own their own

One of the major issues in our economy is the issue of foreclosure. With our rapidly dropping economy keeping a home is a difficult task for many home owners. Also with the increasing unemployment rates, many people are losing their jobs, and no house payment can be kept up with only an unemployment check. There are many existing ways to decrease the occurrence of foreclosure but also many ideas that have not been heard.

Foreclosure is one over arching problem facing the United States of America today with no one perfect solution. Each person in the US suffering from foreclosure has a unique circumstance and situation that has led them to the economic turmoil they face, and that uniqueness therefore requires any solution to the overall issue of foreclosure to be versatile to a plethora of situations. There is not one faultless way to resolve the crisis, but with a combination of different measures, the foreclosure crisis can be slowed.

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.

“How to solve the foreclosure crisis?” This is a very troubling question currently facing our country today. The foreclosure crisis fueled by subprime mortgages, was a ticking time bomb waiting to explode. Many Americans hold large mortgages with adjustable rates that continue to increase. It was only a matter of time before the market would come tumbling down. From 2008 until now the national unemployment rate has risen from 5-6% to about 10.2% (U.S. Bureau of Labor Statistics). With unemployment rates continuing to climb, more and more Americans are stuck in large mortgages with no means to pay them. Many of these debtors are faced with mortgages that are greater than the values of their homes due

Foreclosure is an important issue in the United States and needs to be ended or decreased rapidly as soon as possible for the sake of America’s economy. The foreclosure of homes has decreased the state of the economy, and rendered millions of Americans homeless. There are four key solutions that will stop foreclosures in the United States and able millions of American to keep their homes. The first solution is having banks lower their interest rates for all citizens who are in financial need of an interest rate deduction. The second solution is creating jobs that are able to sustain through an economic crisis. The third solution is for states and towns to conduct public seminars on how to manage and budget ones finances during financially

The “Foreclosure Crisis” cannot be solved it can only be slowed by programs and policies offered as management tools to curtail the volume of home owners going into foreclosure proceedings. This “Foreclosure Crisis” should be addressed from the perspective of both the home buyer/owner and the lender. Both sides of this coin are required to create a balance of suggestions, policies and modifications towards the lending practices of mortgage companies and the reiteration of the home buyer’s positive attitude toward long term investments. Without the initiation of managements tools from the perspective of both groups, the consequences of either sides unchecked actions could result in a massive number of bad loans. The massive number of bad

We have seen that near failure of the US economy, with the DOW and the S&P 500 reaching 12 year lows as of March 2009. Different perspectives and beliefs offer a variety of assumptions that can be drawn about the current and future state of the home foreclosure rates and the US economy. However, one conclusion can be agreed upon by all. Without a feasible and practical solution to the foreclosure crisis this cancer will continue, and thus begins the race to find a solution.

Foreclosure is a growing national disaster in the United States. Every time you tune in to your local news, there is a new family whose house is being foreclosed. Every time you ride around the neighborhood, there is another house up for sale. There are several solutions to this increasing trend including cutting government spending and cutting funds towards unsuccessful government programs, devising financial plans to assist families by setting up payment plans that they can afford, getting communities more involved, more stimulus packages, raising the taxes of the wealthy to lower rates, and easing the limits on section eight housing.

When the crisis was peaking in 2008, Congress was scrambling around, proposing many types of “solutions” to the problem, including giving large tax credits for first time buyers (although some would have to repayment government over time, being somewhat of a non-interest loan, which could exacerbate the problem later on, but I digress), creating programs to allow refinancing of loans at lower interest rates, and bailing out government-related mortgage entities Fannie Mae and Freddie Mac.

I notice that a lot of American politics is about ending major crisis at home and worldwide. Unfortunately the politicians seem to go off course or side tracked on their particular platform or their states agenda. A major dilemma that needs to be addressed in American politics is the current foreclosure rate in the housing market. The issue needs to be addressed because our entire financial stability seems to be balanced on the housing market. When the housing market crashed subsequently the stock market crashed soon after it. As a result of both the real-estate and the stock market crash the banks opted out to tighten up their belts by increasing the criteria to apply for credit and loans. For most Americans who have or had middle class

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.