The foreclosure crisis that the United States faces is not one of a singular mistake or instance, but one of several factors all coming into play in the same period of time. One can not merely solve the foreclosure crisis, and there can be no step-by-step process to “fix” what has been done to the American economy and industry, and ultimately, its citizens. However stabilizing communities ravaged by the current foreclosure crisis will be the most important first step in solving the problem at hand. It is with personal experience that I speak to the issues regarding critical stabilization for neighborhoods now devastated with the current foreclosure crisis.
It is accurate to condemn foreclosure as a crisis. Homeownership creates the economic benefits of jobs, fees, sales, increased tax revenues and the negative effects of foreclosure are devastating not only to the economy, but to the family as well. We know that homeownership raises self-esteem and confidence. According to national surveys, homeowners are happier. They view owning a home as a symbol of success, giving families a greater sense of freedom, security, empowerment and independence. Homeownership also creates a positive, stable environment for raising families as well as having a profound effect on children. Children of homeowners are more likely to stay in school, out of trouble, and are more likely to buy their own homes.
In theory, inner-cities were already experiencing slow-motion destruction. When industry and factories faded, neighborhoods followed. As a result to that post WWII activity, employment bases changed and continued to leave large tracts of unsightly residential properties. White flight, suburban sprawl and underutilized properties are a topic for ...
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...lost their homes back into homes with more realistic terms and expectations.
Perhaps we are in a situation similar in theory to the Housing Act of 1949 which declared that every American deserves a decent home and suitable living environment. It was this act that prompted the acceptance of the idea that government has a legitimate role in local housing issues. But today, we must look at revitalization as a goal and focus on stabilization and a greater flexibility on funds where physical solutions to social problems exist. Only through greater participation from mortgage lenders on foreclosure counseling, enabling legislation to assist states with tax deeds, tax sales, the declaration of blight, the licensing of professional counselors and most importantly, the requirement of pre-purchase education and counseling, will we begin to solve the foreclosure crisis.
Posing the problem of solving the foreclosure crisis first begs the question – “is there really a foreclosure crisis?”
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...
I wonder if as a family opens the door to their new home, a place where they have holiday dinners, celebrate birthday parties or just are able to say “Home”, understands the importance of their investment. One of the most important investments in a person’s life is purchasing a home. Whether it’s a first-time home buyer or a veteran, buying a home is a complex process. Figuring out how much you can afford, learning your rights, shopping for loans, these are a few steps in the home buying process that when learned correctly, can produce a successful homeowner. Learning how to take care of something as special as a home takes time and effort from all those who are present in the home. As the country deals with the economy and the war, the last thing America needs is more homeless people and the rise of the crime rate. Two ideas I have come up with to help solve the foreclosure crisis is to add a investment course to the high school curriculum across America and insurance companies creating an insurance package that consolidates home and auto insurance at an income base rate.
Foreclosure in America has been a rising and prominent problem recently, and has destroyed many Americans hopes and dreams. Over 2.3 million homes were foreclosed in 2008, and an estimated four million homes will be foreclosed by the end of this year. Despite the efforts of many banks and lending companies, over half of homes will foreclose that have received their help. I believe that we have only started in the right direction in solving the foreclosure crisis. Giving money and lowering mortgage rates will help, but I believe we should find out why Americans are in this situation in the first place. We are being too stereotypical when we think the only reason someone is foreclosing is because of irresponsible payments or buying a home out of a person’s capabilities to pay for it. If we understand their situation, we will be better enabled to help and solve their crisis.