Essay on Solving the Foreclosure Crisis

An alternative would be for lenders to add a true customer service department which is not based on pay or get out, but is counseling based to keep Americans in the American Dream of home ownership. This would not only keep their customers for future business with new home loans, but would be noticed by neighbors and the community who are appreciative their home values are not decreasing. The lenders would counsel them through the sale by assisting them with getting the most they can for their home. By getting local community organizations involved to help with home repairs and curb appeal. Once the home is market ready and a dollar amount has been reached for these repairs the home owner will have to volunteer time and/or resources to assist another person going through the same situation. This would not only help the homeowner but will keep homes in the area selling at a fair market value and not bring down the values in their neighborhood. The assistance provided by the lenders and assistance from the community will help build their self confidence and make them feel like they are not alone.

There is by no means a simple solution to solving the home foreclosure epidemic but there are many changes that can be made to help Americans across the globe. The first, I believe starts

This way the government could stabilize the market and only the houses at the top would be left unoccupied. These top tier homes could be offered for sale or for rent if a sale is not possible. A new loan could be made for the trade down, but the members of the family would be required to take a class on how to save and create financial goals.

Most homeowners who are going through what is classified as financial hardship do not know the loan modification guidelines for their lender -- a must if the homeowner wishes to apply for a loan modification to reduce their monthly mortgage payments. Because each lender has a different set of guidelines to follow as to who is eligible for loan modification and who is not, many homeowners hear from their friends, neighbors, or family who were not eligible and believe that they are not eligible either. The fact of the matter is, each lender has different criteria and guidelines instated to make sure that the people who receive loan modification assistance actually need it. Essentially it 's just to weed out the people who are trying to get a lower mortgage payment who can afford their payment, but don 't have good enough credit to qualify for refinancing. The economy is tough for everybody, but loan modification under the Home Affordable Modification program is only for those who are in times of financial hardship and cannot afford their mortgage payment within reasonable means. Some lenders require good credit in their loan modification guidelines, while others do not; some lenders require that the initial loan to have been taken out during a specific time period, while some lenders just care that it was before January 1st, 2009; and some lenders could reject a homeowner because they have had a bankruptcy in the past. There is no telling what your lender 's loan

In these days of economic upheaval, rising unemployment, increasing bankruptcies, and car and credit card loan defaults, perhaps nothing is more frightening than the rising rates of home foreclosures. Owning a home has long been considered the cornerstone of the Great American Dream, and now for many that dream has turned into a nightmare, from which there seems no escape. The combination of predatory lending practices and consumers who have for to long lived beyond their means has created an escalating problem. Unfortunately, there are no easy answers.

Unfortunately, these banks have already approved so many loans that they have put so many people on the streets because they have lost their homes. Fixing the banking system now, although it will help people in the future, will not help the people who have already lost their homes and are living on the streets, homeless. Due to the economic recession, many Americans have lost their jobs and, as a result, cannot make their mortgage payments. When a house is foreclosed on, almost everyone involved loses money: the family loses their home and most of their possessions; for investors, loses range from 20-60 cents on the dollar; lenders typically lose $50,000 for each foreclosure (fdic.gov). Instead of immediately foreclosing on a home, the bank should look at the situation the family is put in: has there been a medical problem? Has one of the people bringing in income lost their job? If so, there should be a period of time granted to the household in which mortgage bills should stop. For example, if a father has lost his job, the wife doesn’t work, and they have young children, mortgage bills should stop until he has found work. Unless the family has saved up a lot of money and is able to make the payments with both parents out of work, there is no possible way they will be able to make the payments. Considering that the family has a mortgage, they probably haven’t saved up a lot of money to keep up with the

A few years ago when the country was in a terrible state, home owners were losing everything they ever worked hard for. It was a terrible time in our country that we do not want to see happen again. Foreclosure became a new horrible trend around the nation. All over the news casting stations we saw videos or pictures of people losing their homes. It was a rapidly, devastating event in America. As the economy begins to rebuild and develop, new methods to provide everyone with another break is flourishing. The innovative development that is reaching the population is the rent-to-own a home plan. Boomerang Buyers, are people with a countless gains that goes from either renting to owning a home within a few years, are in various programs to become a homeowner again. It may be a long procedure but the rent-to-own plan is a resourceful, practical and keep plan to consider as an idea.

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 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 solution to the Foreclosure Crisis is the implementation of continual, mandatory education classes that must be attended and passed, or penalties will be applied to the homeowners. A little tough love from the lender and the government is necessary. Just as our parents follow through and continue to teach us throughout our lives, so must the lenders and the government take the time to “sit” every homeowner down to make them learn and realize that being a homeowner comes with big responsibilities. Whether people are just on the verge of purchasing their homes or their foot is already close to stepping into the state of foreclosure, lenders and the government must take the time to really educate people about the responsibilities and

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

In an effort to assist homeowners facing foreclosure, Countrywide created Countrywide Comprehensive Home Preservation, which enabled consumers’ with the opportunity to refinance or modify adjustable rate loans for a lower interest rate or a fixed rate (Ferrell, et al, 2013). Although, the program was created in an honest effort to help, the damage had already occurred. Unfortunately, the program was too late as the government was now questioning the lending practices at Countrywide (Ferrell, et al,

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.

Extended payments and payment percentages back to home owners is great, but will it work? Possibly, but another idea on the matter is to lower the payments and higher the interest rates before a home becomes foreclosed.. Instead of just foreclosing a house the bank will lower the payments making it easier for a financially unstable person to make the

It is very difficult to get a loan from a commercial bank for first-time homebuyers, and for existing homeowners who are in the process of foreclosure. The loan modification programs that are available now are bandages for a much bigger problem, the problem lies in the underlying banking system practices, polices and traditional way of doing business.