The Foreclosure Crisis Of Foreclosure

1052 WordsNov 24, 20145 Pages
It is not surprising that after having lost their homes either in foreclosure or short sale, “foreclosure victims” were hesitant to purchase new homes. Losing a home, a place of stability, safety, and family, is just as mentally taxing as economically. However, as the world economy is recovering from the 2008 financial crisis, so are the victims of the housing market crash are slowly opening up to taking up mortgages and becoming home-owners once again. As the economy slowly improves, in the fourth quarter of 2013, the US GDP was at an increase of 4.1% (Kurtz). Although it has not fully recovered from the Great Recession, the economy has been on the upward trajectory. Home prices have increased significantly over the past two years…show more content…
The program allows for those who have had declared bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale in the past year to obtain a new loan. While the applicant has to first demonstrate that he or she meets some key qualifications such as proof of an “economic event” outside of his or her control that has led to the loss of the home and full recovery from the event, it is a great source of support and needed assistance for one seeking to purchase a home. It is understandable that in most cases, those who have been hurt by the housing market crash were not directly at fault for their losses and are now hesitant to return to homeownership, so the Back to Work program is a great source for them. For those who are not yet fully ready to commit to another mortgage, there is an option of “rent to own.” This option is more flexible as it allows the signers to lock in the price of the property but decide at a later point on whether or not he or she is to buy the house. At the signing one submits a non-refundable deposit, option fee, which is then added to the down payment if he or she chooses to purchase the property when the time comes. The tenant then lives in the property he or she desires to purchase and pays monthly rent for it. This option can be a solution to many wanting to own homes but not being able to at the moment due to either poor credit, inability to pay the down payment, or hesitation coming from previous
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