Solving The Foreclosure Crisis Two Solutions Essay

It does not take much attention focused at the media to see that our great nation is struggling economically. One of the major contributors to this current economic meltdown is the rapid increase in foreclosures across the country. The country’s immense housing crisis can be addressed by referring to not only the accumulating irresponsibility of the individual American loan borrower, but also the growth of greed at the corporate level which led to the financial market’s negligence. To stop the spread of this issue we should look at closer government watch of the market and specifically focus on consumer education. The Quagmire What is foreclosure? Well it is actually a simple concept: foreclosure occurs when people default on their†¦show more content†¦This degeneration of restriction on giving out loans created an environment where lenders were no longer interested in income or assets of clients, just a credit score. This allowed for nearly any yahoo to be eligible for loans. It would be as if we lowered the driving age to nine so that the auto industry could increase its sales; any sane person can see the possible horrors that could occur. When individuals request a loan to purchase a home they sometimes do so without a good strategy. Moving forward with such complex and shortsighted decisions without any financial planning can result in catastrophe for these people. Say average Joe has just graduated from college and has worked a couple of years. He believes he is now ready to buy a home. Without any experience in the matter he looks for guidance from a financial advisor, for example his banker, who has his or her own industry’s best interests in mind. Obviously some common sense should be played out through Joe’s mind about looking ahead in the future and weighing his projected possibilities and truly getting a grasp of his financial capacity. However, is it fair to put all the blame on average Joe who has no idea about how important the issue of buying a home is? This question is relevant especiallyShow MoreRelatedSolving The Foreclosure Crisis Essay987 Words   |  4 PagesIt is a well know fact that the world is in a financial crisis which has resulted in the foreclosure crisis. This is a problem that can not be resolved by the government alone. If the government continues to hand out bail out money to businesses trying to help them avoid bankruptcy or from going out of business the national debt will continue to increase. The national debt will have to someday be paid off and if the government continues to borrow money the result will be higher income taxes paidRead MoreIt Takes an Entire Nation to Solve an Economic Crisis Essay example1229 Words   |  5 PagesEntire Nation to Solve an Economic Crisis The foreclosure crisis is genuine and terrifying for what it could mean for America’s economic future. Home foreclosure may result from unemployment, excessive and unexpected medical costs and family problems. These issues are more chronic than they are acute and so it is impossible to say that there is a quick fix or a single solution to solving the foreclosure crisis. While some individuals want to wait out the crisis and let it fix itself, I believeRead MoreSolving the Foreclosure Crisis in Low-Income Neighborhoods Essay1168 Words   |  5 PagesIn cities across the United States, the ongoing foreclosure crisis has caused the rapid spread of urban blight. The proliferation of foreclosed properties has consequences far beyond the hardships encountered by families facing foreclosure. Rising crime, unstable neighborhoods, and local budget problems are but a few of the external effects created by an overabundance of foreclosed property. 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This inadvertently ruins not only their credit scores, but also ruins the chance of owning a home in the future. This results in crushing families hopes of achieving the American dream of home ownership. The flip side of this crisis is the affect that these foreclosures are having on the financial institutions. An investment that does not return any capitalRead MorePromoting Responsibility in Lending: An End to Foreclosed Homes1009 Words   |  5 Pagesin crime, borrowing money, or the loss of jobs. One of the most devastating effects of the economic problems we are facing is the one directly related to their cause: the foreclosure crisis. More than 2.7 million homes have been foreclosed since 2007, and the number continues to climb. One of the first steps to solving the crisis is identifying how it started. During the last decade, people across America were encouraged to obtain mortgage loans and become home owners, rather than renters. UnfortunatelyRead MoreAn Integrated Solution to the Foreclosure Crisis Essay2100 Words   |  9 PagesForeclosure. Only recently has the term become a buzz word among the American public and various media. The crisis that has enveloped the United States has initiated widespread questioning of the very financial systems in which the American innovators have grown to prosper. Although the foreclosure crisis is often viewed as a product of greedy financial institutions, causation cannot be distilled to individual constituencies; further regulation on various components of the crisis can develop theRead MoreSolving the Foreclosure Crisis 1107 Words   |  5 PagesSolving the foreclosure crisis is not an easy quest. In order to solve the crisis, it will take everyone getting involved. The banks and other lenders need to be willing to work with people who have been in their homes and need to have their loans restructured or refinanced. There should not be any more QUICK FIXES. Too many of the lending institutions are trying to put a bandage on an open wound. Instead of working with the homeowners, they are willing to put the residents out of the homes and thinkRead MoreEssay on Foreclosure Crisis In America1084 Words   |  5 P agesIt is evident that the housing deficit is just a layer of the many problems we are suffering from during the hard times in our economy. Foreclosure is indeed a horrific word that is haunting homeowners across the US. Because of the situation in the current economy, millions of Americans have been plagued by foreclosing on their homes and are left to find new location for themselves and their families to live. Recently in Detroit, with the efforts to negate the current standingsRead MoreProposed Solutions to the Foreclosure Crisis in America Essay example1755 Words   |  8 PagesForeclosure, the process of claiming the defaulted property to cover the cost of an unpaid debt, has hit America like a tidal wave. Considered to be a crisis and a major factor in the poor economic situation of today, there is no doubt that the current state of the housing market and the influx in foreclosures across the nation has had a dire impact on the American economy since the beginning of 2007. Strategies, policies, action plans, and all other means of organizing a recovery have been attempted