Steps to Take to Prevent Foreclosure Essay

1384 Words6 Pages
There are many programs available to stop a foreclosure which is a reactive approach to solving the foreclosure problem. We can’t turn back time and change the fact that houses have depreciated in value or prevent an unexpected layoff, but moving forward we can take steps to prevent further foreclosures.
One obvious method is to promote awareness about the negative risks of overextending one’s credit. We see ads on television about the ill-effects of drugs and alcohol, but it’s rare to see an ad about avoiding the use of credit cards. In fact, the opposite is happening; companies are going overboard in sending credit card offers to families all types of families—those that can responsibly use them and those who are up to their
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Many people take expensive vacations and put them on credit, not worrying about the long term implications. They live for the moment recklessly instead of planning for a sound financial future. This impulsive, egocentric need for self-pampering and indulging creates long term financial problems that people don’t anticipate. I appreciate that life can be short and we need to find some sort of happiness, but expensive self-indulgent vacations, luxury vehicles, and gambling at casinos when one cannot afford such things is reckless and irresponsible. If one lives alone, perhaps they can take these risks, but most people that own homes have families with children, and it’s not fair to the kids to be ousted from their homes due to their parents’ irresponsible habits.
In addition to people being accountable, mortgage lenders should not be enticing homeowners with equity to take out homeowners loans. That only puts more financial burden on families. If homeowners had some equity built up, they could use that if one parent got expectedly laid-off. Equity should be considered a sort of saving account to be used for hard times, not for luxuries. Too many families repeatedly take out home equity loans, resulting in having to pay both a mortgage and a home equity loan. People need to think long term instead of expecting organizations to bail them out or to claim bankruptcy. I truly believe that most economic crises could be

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