The Foreclosure Crisis Of Foreclosure

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 foreclosure crisis that took over the United States a few years ago left many people facing economic hardships. This crisis happened because there was a huge housing bubble that was unsupported by actual home values. The bubble began bursting in spring of 2008 and the crisis culminated in mid-2009. Many lenders went out of business and many home owners began losing their homes. When the government became aware of this problem and began to implement new programs, it was already too late for many homeowners. Those homeowners are not at a point where they might be considering buying a new home. The housing crisis has created new rules, regulations governing the mortgage industry, and has also created a new agency dedicated to consumer protection. This consumer protection agency is called the Consumer Finance Protection Bureau. These dramatic changes have helped to create more responsible lending. The improving market conditions such as low housing costs and competitive interest rates are allowing those affected by a foreclosure to become homeowners again. Prospective buyers have a multitude of programs available to them, so even those with less than clean slate have several options.

As you see there are definitely pros and cons when deciding if renting or buying is right for you. When you rent, you don’t have the responsibility of maintaining the home, you aren’t worried about improving the interior or exterior of the dwelling, you don’t have to pay taxes on the home, and you aren’t faced with the possibility of losing the capital put into the housing market, or the possibility of foreclosure if a mortgage payment is missed (Should you rent or own). But on the flip side, when owning a home the equity in the home can be converted into money if refinanced or sold. Over the years, if kept well, real estate property increases in value and therefore this asset will up in value the longer the property is held (Should you rent or own).

The economic crisis that hit the country took many jobs or people had their hours cut. With this situation happening, many people were finding themselves short on their mortgage payments and needing to go into foreclosure or having a short sale on their homes. Either option the homeowner chose or had chosen for them, they found themselves with poor credit and no way to become homeowners again. However, most wait times before was a minimum of two years up to seven years before that previous owner could be eligible for traditional loans.

The insolvency seen in the Housing Market manifested in the large number of stagnant foreclosures caused a dramatic decline in housing prices, which resulted in many homeowners owing more money on their houses than they are worth. Market-level insolvency is caused by capital flight in a specific market in response to a scare during a decrease in solvency. During the scope of this recession, the initial, progressive decrease in solvency was caused by a negative Net Capital Outflow in conjunction with the cash-vacuum produced by the US Budget Deficit, and the scare was caused primarily by the failure of several significantly-sized corporations and a rapid increase in foreclosures caused by the loss of a large number of jobs.

I often used to watch a show called “Extreme Makeover” where a team of builders would come to a neighborhood, build a need worthy family a beautiful new home, and then just give it to them. “Wow! What a lucky family,” I would say. “How fortunate.” However, as time went by, that same family would be in the news again. Why? The house was in foreclosure. The people had gone to the bank and taken out a mortgage against the home, then spent all the money they got for it on other things.

victims to get loans are rapidly expanding. After a home is foreclosed, it is generally difficult for

Renting to own is a viable option for many financially-stricken Americans by eliminating the high costs of down-payments. Renting to own allows the seller to lock in a sale price while renting to another party, usually a small amount higher than a mortgage, but it allows the buyer to rent the house under contract until ready to purchase. The process keeps the seller from paying multiple mortgages without income, and it benefits the buyer by giving a viable alternative for home ownership instead of traditional

There are many ways of helping yourself get out of foreclosure, you just have to really want to get out of the bad situation your in and do the work. It’s almost as if you’re bumping your head right now and as soon as you feel that pain grow beyond bearing you’re going to move and get some ice to help deal with the pain. People suffer because they have the lack of knowledge, if you ask questions and talk to people who have the power to help you and not have to charge you anything could be just the beginning of you getting out the worse state your in. Not knowing what tomorrow will bring just shows you that you need to work on the current time. America is set on dreams that come true and if you truly believe you can get through this

Renting to own can be a valuable solution to the boomerang buyer with tainted credit. The benefits far outweigh the other options for these buyers. During a 3 to 5 year period of renting a home, an individual’s credit can improve and open up possibilities of homeownership. This allows the potential homeowner time to prove they are reliable. Since a foreclosure stays on your credit report for 7 years the person is going to need a place to stay. With a “foreclosure” attached to their name they will not be able to hop into another house right away. This is the perfect window for someone to get his or her feet back under themselves while chipping away at owning another home.

I really didn’t know much about foreclosure. So I did some research. I asked many people of many different ages from eighteen to sixty-two. A lot of people said,“ Just pay the bill”, but that is often easier said then done. Some said they got in over their heads and were not able to get out. Some also said that their income and credit look good on paper but did not cut it when it came to paying their bills. Some told me their income had changed due to losing their jobs or having a spouse pass away. There are many circumstances that are out of people‘s control. Attempting to gain some control over the situation often is better than just praying that nothing bad will happen.

I have a unique perspective in that I have gone through the foreclosure process twice since 2009. I have experienced firsthand what it is like to seemingly lose everything, to feel as low as I have ever felt, to be embarrassed and mortified beyond belief

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

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.

Analysis: But sometimes buying a house isn’t the best choice. It’s a long-term commitment that requires the homeowner to have a stable and secure job. If you default on your mortgage, for example being late on your payments or even missing payments the mortgage lender can take your home away. Then the lender can sell your home resulting as a foreclosure. Foreclosure also affects your credit making it harder or almost impossible to purchase a house in the future.