Solving the Foreclosure Crisis

Many consumers who are looking to purchase a home again with the recovery of the housing market may not have the ideal financial background to get started. In order to discover whether or not they qualify, these potential borrowers should first consult with a mortgage professional, such as a

The same way that President Clinton boosted about 67.5% of all American people could become homeowners in 1995, will be the same amount of people that lose their homes potentially putting children out on the street and increasing the unemployed homeless population taking up residence in tent cities, where is the hope now? Now is the time to act and include benefits to all homeowners that still believe in the America Dream. The Government and the Banks need to provide modification programs to all homeowners to reduce their interest rates to 4.75% regardless of equity or loan to values. If these homeowners who are currently 200% loan to value, care enough to strive to make every payment timely but are in loans that are coming due or ready to adjust, the industry owes these homeowners the right to a loan that they can afford and maintain regardless of the economy. Each homeowner in America is surrounded by foreclosed properties or short sales affecting their value and impeding any ability to successfully sell their properties.

The foreclosure crisis in America can only be resolved by every American citizen working together to build a stronger America by changing the way we make decisions for expenditures in our lives. We must stop overextending ourselves beyond our economic means. The foreclosure crisis of America has been caused by Americans borrowing money to purchase a home that they cannot afford. Lending agencies have allowed Americans to borrow more money to buy a home than they can afford. Each lending agency seemingly used logical reasoning that if they did not lend the funds to the homeowners, another agency would. The foreclosure crisis was caused by homeowners, businesses, banks, and even the government. The economic recovery depends on not

After the United States suffered one of the biggest foreclosure crisis in its history, countless of American homeowners were forced out of their homes when the economy collapsed. In a slow and often painful recovery process, many are battling continued high interest rates and home prices in attempt to get back their families back into a normalcy of life. As a solution to the ongoing ownership dilemma that many currently face, the concept “rent-to-own” has come into the economic limelight. This resolution has started to be viewed as a realistic option to regain ownership and improve quality of life after the fallout of the foreclosure catastrophe through benefiting both buyer and seller of real estate.

Within the past three to four years, the United States has seen the dramatic collapse of the housing market. The housing bubble spurred by ill-advised loans to individuals who could not afford a mortgage, complicated contracts which had interest rates and payments changing without reason, and the mass purchasing of bad loans by lending superpowers, had popped. 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, leading to hundreds of thousands of foreclosures. These

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

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.

Refinancing and / or re-modifying the current mortgage of the buyer in trouble are the obvious solution. The interest rates would have to be fixed rates that would be low enough for the buyers to stay in a favorable situation and not get delinquent. This would also help the homebuyer to make needed improvements or upgrades to their home if needed. Once this solution is in place, someone would have to be able to control the procedure and make sure that everyone is in compliance with what they are suppose to be doing. It would make no since, if this solution would take place and then fall apart because no one was doing the follow up on it. At this point, everyone would suffer because the buyer would still not get

My suggestion is an Emergency Homeowner Protection Fund that regulates insurance companies that issue mortgage contracts in each state. The fund would be not for profit operating for the sole purpose of helping working class and low income families with a home mortgage to remain in their homes. The criteria for assistance would be that the foreclosure was precipitated by loss of employment, a medical catastrophic event and divorce which are uncontrollable events. The fund would be responsible for litigating charges against insurance companies and real estate companies that practice unorthodox methods against unsuspecting home purchasers in cases where loans were given to a person who has no income and no job.

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.

Banks now offer programs to help homeowners/homebuyers, but many times, these loans are often hard to obtain. The current programs have more stringent requirements that are unreasonable for distressed homeowners. In my opinion, the only way to rectify the foreclosure issue is to make a substantial change in how potential homebuyers and homeowners obtain loans.

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

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.

n today’s economy, prices for everything, especially homes, have sky rocketed and with this in mind, the opportunity to rent-to-own is sought after as not only the most popular option, but more often the best option. Rent-to-own is negotiated through contract so that the renter can eventually complete his or her payments and eventually claim the house as their own property. With other various ways to pay for a home, many potential home owners will most commonly find themselves confused and may have multiple questions regarding what payment option is the best for them. Like everything in life, rent-to-own has its pros as well as its cons. It is up to both the Buyer and the Seller to properly negotiate so that the pros outweigh the cons and that both parties can be equally satisfied. After the Backlash of the economic recession, people who have lost their homes due to foreclosure must be able to quickly find a seller who will work with them, negotiate a rent-to-own payment plan with reasonable payment costs, understand the other payment options available, and finally, be able to secure his or her purchase and eventually claim full ownership of the home.