In the early part of the twenty-first century Americans have been able to get loans for houses that at times seem to be at best risky. For some Americans this was the only option they had in order to complete their American Dream of owning their own home. However for many of these same people and many others the economy went into a downward spiral and many foreclosures have been put in front of many Americans.
Much has been made as to what to do with the people whose homes are now gone or are struggling to keep their home off the foreclosure list. One solution would be to just let them get what they “deserved.” However as easy as this may be to just write a person off this is not the best solution to solve the problem. A better solution would be to set up a repayment system. This would include steps of repayment. First, there would have to be minimum amount of income a person has to make in order to start paying back their loan. For a single person a minimum of $25,000 a year in income should start the minimum payment for the loan. There should be a time limit for how long someone has to get to this point. If someone does not have a job within one year of the start of the program they should lose their house. There are plenty of jobs available in America. These jobs just might not be the dream jobs but there is still work out there. For example fast food is always looking for business.
Even if someone is only able to get minimum wage working they should not lose their home. The government could intervene in their loan and put a hold on their interest and payments as long as their working. After a period of two years start a minimum payment schedule based a low amount to help pay off the loan but ...
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...nse by a small portion. Just by cutting the defense budget by .1% would generate millions of dollars to be used to help pay off the loan companies interest to people.
There is a solution to the loan foreclosure problem besides having the government paying the loan companies money and giving money to the people involved in the loss of their homes. With a little bit of money divereted to where it is needed most the United States could start a chain reaction into helping itself recover. If people can help pay off the loans they put money into the economy, and if they pay off their loans they can put even more money into the economy. Slowly over time the nation could divert the money that was needed to help pay the loan companies to help reduce the national debt. It is not much but if something is not done the other options look grim to say the least.
hardship, the only option available to ensure that they can afford their monthly mortgage is to
Reduce it by placing higher interest rates and enforcing higher taxes and spending cuts (Smith David).
Allowing market participants to begin putting their resources back to work in areas they’d be most beneficial. President Obama’s fiscal responsibility summit last February indicated that he understood the urgent need for fiscal discipline. Congress’s enactment of the American Recovery and Reinvestment Act and President’s proposed budget makes the goals of a sustainable budget and addressing nations longer term fiscal priorities, such as entitlement liabilities, even more elusive. The administrations recently released midsession reviews from the office of management and budget that over the next 10 years the accumulated deficits will total $9 trillion which means that the debt held by public will be a staggering 77% of GDP in 2019. If the debt level continues to grow faster than our economy, the US will owe more than it makes.
The United States is facing a large military budget spending issue with the Department of Defence reporting a cost of around $525.4 billion this past year. Washington Posts announced that, "The United States spent more on its military than the next 13 nations combined in 2011." While military spending is a large part of the government budget, and there is enough room to reduce spending as long as there are a set of precautions of which necessities the government cannot cut.
we have is in three basic steps to cut $10 billion from the federal deficit
As America heads into a new year, we find our government tightening its purse strings and cracking down on excessive spending, with an emphasis on the US military. According to author Brad Plumer, a reporter at the Washington Post, “U.S. defense spending is expected to have risen in 2012, to about $729 billion, and then is set to fall in 2013 to $716 billion, as spending caps start kicking in.” Pared with a more drastic 350 billion dollar cute going into effect over the next ten years, the military finds itself cutting what cost the most to maintain and support troops (Fact Sheet par. 2). In recent years the military has bolstered an overwhelming 1,468,364 troops (Active Duty). These numbers are to be cut substantially; the biggest cut is to be seen in the Army. The Army must deal with a reduction of 80,000 troops, cutting its force of 570,000 troops to nearly 140,000.Subsequently, the budget cuts, which have led to a reduction of troops in the military, has driven the military to turn to advanced weapons technology that requires less people to m...
Because of this many Americans have long advocated for Military Defense cuts and redirections of funds to both the public sector and other Military Institutions like Veteran Affairs (VA) and Military Personnel Healthcare. If the U.S. were to reduce/re-appropriate the National Security Budget, they would see improvements in the public sector, in veteran care, and could improve other sections of the FDB (Federal Discretionary Budget).
Many United States' citizens are unaware of the country's current financial state. Many assume that one of the world's wealthiest countries could never be in debt. This is untrue however, and, in fact, the country with the greatest income per capita is in major debt. This study will examine possible solutions to reducing the United States' national budget deficit.
In essence, the problem leading to the foreclosure crisis is the recent decrease in people’s ability to make their loan payments due to job loss and lower wages brought on by the economy’s weak state. Rather than throw billions of dollars at big banks in the hope that they find ways to help the homeowners’ loans, the government should attack the problem through the individual. Simply, the government aid being spent in the hopes of stimulating the economy should be funneled toward reducing the balance of home loans to make the monthly payments affordable for the owner. By funneling the government aid directly to the American home owner in need, the economy would greatly benefit as homeowners regain their footing with their budget because the economy and foreclosure are directly related. When one hurts, so does the other; when one prospers, the other does as we...
In the early 2000’s the housing market boomed, real estate was a hot investment and everyone was looking to buy a home. However not everyone can afford a home and a majority of people were forced to take out a mortgage to purchase real estate. During the housing boom banks were supplying subprime loans and upping the risk in the real estate market. These loans were not only risky but irresponsible on the part of the banks’ lending them, and although individuals receiving the loans thought they were being helped at the time, these loans were a major reason why so many people their homes, almost crippling toe U.S economy as a whole.
...just as welfare helped people during the great depression, this new plan could help people during this extreme recession. It is so important to keep people in their homes and not on the street and with help from our government and each individual taking responsibility for their actions, the amount of people facing foreclosure can decrease. Every American wants to know that they have a place to go home to and to call their own. For many people placing their homes up for foreclosure was something they never thought would happen and it is easy to say what one would have done to prevent this. As American we must stop blaming and looking at what has happened to the housing market and start planning on ways to fix this situation. Our country should take the resources we have now in the present, and create a plane to insure that every person is taken care of in the future.
...ederal employees (making no mention of additional costs such as Social Security and inheritance taxes) would be $596 million in mandatory spending and $302 million in discretionary spending between 2010 and 2019”(procon.org). This vast increase in spending will only contribute to national debt and our dependency on foreign countries giving the U.S loans.
National defense is a sensitive topic to most because we need it to live in our country as safe as we do, but it is a big problem in our national debt. The Washington Post showed that the United States spends 20% of its budget on defense and it has increased dramatically since the tragedy of 9/11 (“America’s Staggering Defense Budget”, Plumer). America spends more on its military than the next 13 nations combined, which...
As of December 29, 2009, the website Foreclosure.com reported that over 2.2 million homes in the continental USA are in some form of foreclosure, 486,323 are in pre-foreclosure and 465,490 have already been foreclosed. Over seven hundred thousand have tax liens against them and 87, 389 have been sold in Sheriff sales. Along with the homeowners, mortgage companies and banks have suffered tremendous financial loss. However, the homeowners lost so much more; they not only lost the roof over their heads, but memories, their self-esteem and their piece of the American dream.
The foreclosure crisis has no simple solution since so many things affect it, but fixing each thing one by one will gradually help. Incentives for people to buy are fantastic ideas. The $8,000 tax credit to first time homeowners is a good start. There could be others that don’t exclude current homeowners. The first few months’ mortgage could be paid for, or provide furnished houses. President Obama is very intellectual and I think he has the capacity to make wise decisions and fix our foreclosure crisis.