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Solving the Foreclosure Crisis Essay

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As the saying goes, history repeats itself. The Great Depression is a time in American history that will always be remembered as a time of hardship in Americans’ lives. The goal: to never have such great oppression exist in the United States again. With the way the economy is headed today, many people are skeptical as to whether history will really repeat itself and create a new Depression. One of the biggest problems in the country today is the foreclosure crisis. Many Americans are living outside of their means or have lost their jobs and are unable to make their mortgage payments. When people can’t make their mortgage payments, they will lose their home and their family will be out on the streets. There are definite changes that need to…show more content…
No one needs a huge, luxurious home. Live within your means. 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
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