The Foreclosure Crisis

The foreclosure crisis is the second major financial dilemma of the twenty-first century. To solve this, the roots of the problem need to be dug up and exposed followed by replanting with an appropriately improved regulatory system to help build stronger roots for the future. It seems that the free market system can't be free anymore given its intertwining roots extend way beyond domestic to international financial systems. There are two fundamental causes to the latest credit crisis: 1) poor quality securitized mortgages and 2) insufficient underwriting for credit poor borrowers. Secondary (downstream) problems making the financial crisis more complex include underemployment and business failures. Many banks,

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

Too many Americans have fallen victim to the crisis that has become the norm for our citizens these days. Lenders no longer want to work with individuals who have gone through the foreclosure process and for many it is not only their homes they lose. Some have lost their jobs and/or families, others fall into a deep depression and worst of all some have taken their own lives.

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

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.

For the last several years, the one issue that has been bringing the United States into a state of trouble that it has not been seen since the great depression has been the monstrous Foreclosure problem. Thousands of people have lost their houses. Thousands of people have faced the dangers of debt and chaos. Thousands of people lives have been ruined because of the mistakes that Americans have done in this nation. In order to solve the problem, one must take a look at how it started and how this depression began. Around eight-nine years ago, the market in housing caused many people to chase after it. This caused a mistake of creating a domino affect that has hurt banks from lending out the high amount of money to people and finding out

Foreclosure has become an outbreak affecting the entire United States of America. Realtytrac just reported in the month of April 2011 that one in every 593 housing units received a foreclosure filing. (N1) That statistic is for just one month! Some states such as Arizona, California, Florida, Michigan and Nevada continue to be plagued with an influx of homes falling victim to foreclosure or some other form of default. Each home that is a casualty to a foreclosure, short sale or even bankruptcy was collateral for the lender holding the promissory note. The consequences tend to come at a cost for the lender selling the property but a deal for the buying investor. The costs incurred and the losses experienced by the

Providing jobs for unemployed Americans is the key to solving the foreclosure problem. Those who recently lost their jobs will be able to stay current on their mortgages and avoid eviction and foreclosure. Those who have already been foreclosed on will be able to save up for a down-payment and then buy a vacant foreclosure to get back on their feet. The overall economic benefit will

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

The same way that President Clinton boosted about 67.5% of all American people could become homeowners in 1995, will be the same amount of people that lose their homes potentially putting children out on the street and increasing the unemployed homeless population taking up residence in tent cities, where is the hope now? Now is the time to act and include benefits to all homeowners that still believe in the America Dream. The Government and the Banks need to provide modification programs to all homeowners to reduce their interest rates to 4.75% regardless of equity or loan to values. If these homeowners who are currently 200% loan to value, care enough to strive to make every payment timely but are in loans that are coming due or ready to adjust, the industry owes these homeowners the right to a loan that they can afford and maintain regardless of the economy. Each homeowner in America is surrounded by foreclosed properties or short sales affecting their value and impeding any ability to successfully sell their properties.

In 2007, there were over 1.28 million foreclosure filings. The number of foreclosure filings remained above historical national averages for eight years, growing every year until 2010, when levels capped at 2.87 million. According to RealtyTrac’s 2014 Year-End U.S. Foreclosure Market Report, national foreclosure filings--including bank repossessions, default notices, and scheduled auctions--saw an 18 percent decrease from 2013 to 2014, but still had not reached pre-recession levels. In 2015, nearly 700,000 of boomerang buyers will be eligible for new homes, according to TransUnion. Over the next five years, 2.2 million borrowers will again be eligible for mortgage credit as their seasoning periods expire.

The main goal the government should be focusing on is to reduce homeowner’s monthly payments, by enticing lenders to make concessions in interest rates that will make their payment affordable. This plan can keep families in their homes and would decrease the number of foreclosures. Providing a financial rescue plan without requiring

The foreclosure crisis in America has impacted everyone- even those who don’t own homes. Our nation is currently struggling with high unemployment, a relatively illiquid credit market, and a deficit that raises serious concerns about the value of the US Dollar in the not too distant future. With interest rates already at historic lows and the government pursuing an unprecedented policy of quantitative monetary easing, options for government intervention are limited. While there is no simple solution to this problem, I think that we must look at the reasons the housing market went into crisis, and based on that develop a regulatory system that will allow us to avoid another situation like this in the future. If Americans believe

“Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000…”

This new insurance program will lower the burden on mortgage companies, banks and government. It will also decrease the rate of foreclosure by providing short-term financial assistance to homeowners who tentatively lose their income.