Solving the Foreclosure Crisis with Grace Periods

Seeing other people reactions towards foreclosure helps me to develop a meaningful value of life and how to appreciate it everyday of my life. As I see what is going on around me I came up with three plans that can be executed to help all people who are dealing with foreclosure issues. This can become a major factor for the economy. One is called Own A Home , Financially Fit, and Bills To Kill. These are guaranteed plans that will help any individual that feels that they are not financially secured to become a homeowner. The Own A Home program is designed for aspiring homeowner in which they

The housing crisis in the late 2000’s was created in part from subprime loans that lenders gave to individuals that did not have to provide proof of income that they could afford the house. This was a disaster likely to repeat itself. If a person is hoping to buy a home, they will buy whatever the lender allows them to purchase even though it could be a financial stretch. Lenders, builders, sellers, appraisers, buyers, owners, and governmental policy makers are all still gambling with the economic future of both their buyers and the American economy as a whole.

As the economy drops and foreclosures are on the rise, millions of Americans who were financially stable several years ago are asking the same question, “How could this happen to me?” The crisis has occupied the minds of politicians, who are trying desperately to solve this problem, but the tragedy continues as more and more Americans are foreclosed on with no alternatives. The foreclosure crisis will not be solved by simply lowering interest rates, firing loan brokers, or other short-term, ineffective solutions. The long term solution to the housing crisis has nothing to do with housing. The government has lost its way and needs to redirect the way the whole economy is run.

As another option, many past homeowners that were truly focused on home owning again, and soon, had found themselves having to move to another location in order to catch a deal which offered, possibly, more options. Rather banks, depending on location, gave leniency or stated that one must place down an 'x ' amount of the given percentage in order to start anew in home ownership, the chance can always be looked upon as a positive one. Another positive outlook in this scenario is the fact that the homeowner of a past foreclosed home was given the chance to not only have the opportunity of a new scenery, environment as well as neighborhood but was also given the chance to possibly obtaining a home that can be looked at as grander than the last one.

We could do this buy bailing more companies out of their debt than by paying for the homeowner’s debt individually. This would allow the companies to open new positions and not have to cutback as much. The companies could also choose to pay their employees more for the work they do or pay them what they should. That is a problem a lot of Americans run into. The companies do not give them fair salaries for the amount of work their doing. The employees do not complain in fear of being fired or, “let go.” So the process of being paid less than they should continues until someone decides to step up. Even at that nothing is done to improve the situation because the company will make less profit. This is expected though because business is business.

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.

The best solution to the mortgage crisis America is facing today is both easy . . . and difficult to execute. The solution is two-pronged: change the American philosophy on consumerism and debt while also making concrete changes in the way the lending industry works. Both demand taking a long-term view in order to be successful.

Everyone has heard the news on the current deteriorating state of the economy, the severe credit crisis and the declining housing market. Fox, CNN, MSNBC, other news outlets and even the President remind us of our pain daily. The people's fears and perception have now become reality. Home foreclosures are at an all time high even in my neighborhood in Jersey City with many more foreclosures likely to come. The unemployment rate in Hudson County, New Jersey is growing daily and is the highest it has been in many years. Housing resale values are at all time lows with no end in sight. Even the banks are going bankrupt as are many Americans who no longer qualify for credit.Because of the recent credit crisis, many people don't qualify for a new loan to buy a house right now, despite the incredibly low housing prices.

Brooklyn, NY – December 30, 2009 Foreclosures continue to rise drastically across the United States due to the recession, and have effected, and continue to affect thousands of families and individuals every day. One aspect we must take into consideration is that most people are not informed of what foreclosure means, or the process, even those who are homeowners. I believe that one step to preventing foreclosure is to educate first-time homebuyers. In addition, first-time homebuyer programs should not only assist potential buyers with financially preparing them to buy a home, but to keep the home once

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

Our nation today has become spoiled with instant gratification. Loans and the borrowing system have given the idea that patience is no longer a virtue and that saving is no longer necessary. Material wealth is increased, but so is the idea of false wealth. People have become so bloated with it; therefore they take on more than they can afford. That is what has happened with our nation’s recent wave of foreclosures. Loans have led everyone to believe that they can own a home and it has omitted the practice of saving. That is where the beginning of the solution lies. Our nation’s people need to relearn the value of patience, therefore we need to learn how to start saving again because although loans may pave a way toward

The current real estate strife and “market meltdown” had a number of contributors; from the over-speculation in “bubble” markets like Florida and Nevada to Adjustable Rate Mortgages (ARMs) that attracted families not prepared to support the sudden increase in monthly payments. To repair the current market, give solace to homeowners not yet in foreclosure, and keep banks whole and prevent further closings takes an understanding of the factors that led to our current state, a plan to get us out of it, and a means to prevent its reoccurrence.

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.

But government should force banks to work extremely hard with borrowers who are diligently trying to save their home. The time for action is now as any inaction will only lengthen the crisis. The subprime mortgage crisis is an on-going financial problem and a housing market nightmare for the United States economy. Some believe that a dramatic increase in mortgage delinquencies and foreclosures will caused a significant adverse effect on banking institutions and financial markets. Thus far, the housing market has crumbled due to this mortgage crisis, resulting in elevated record number of foreclosures. For many, the dream of home ownership has evaporated. How can this dream be re-established? Kevin Alexander Gray states “We‘ve got to do more to stem the tide of foreclosures and stabilize communities throughout the country,” (Gray, 2009). What actions should be taken? Mr. Gray points out, that the goal is to take corrective action to prevent a continuous meltdown.

With regards to matters of foreclosures, the situations that arise are often the result of families and/or individuals being impacted by various economic situations whether through job loss, illness, property de-valuation or fiscal irresponsibility, the problem is a complex one to solve. The nature of this essay is to take into consideration as many variables as possible and present options which may provide sensible value in which to aide those who befall under less fortunate circumstances as well as those circumstances that are more favorable.