Steps to Take to Prevent Foreclosure Essay - 1384 Words

There are many programs available to stop a foreclosure which is a reactive approach to solving the foreclosure problem. We can’t turn back time and change the fact that houses have depreciated in value or prevent an unexpected layoff, but moving forward we can take steps to prevent further foreclosures. One obvious method is to promote awareness about the negative risks of overextending one’s credit. We see ads on television about the ill-effects of drugs and alcohol, but it’s rare to see an ad about avoiding the use of credit cards. In fact, the opposite is happening; companies are going overboard in sending credit card offers to families all types of families—those that can responsibly use them and those who are up to their†¦show more content†¦Many people take expensive vacations and put them on credit, not worrying about the long term implications. They live for the moment recklessly instead of planning for a sound financial future. This impulsive, egocentric need for self-pampering and indulging creates long term financial problems that people don’t anticipate. I appreciate that life can be short and we need to find some sort of happiness, but expensive self-indulgent vacations, luxury vehicles, and gambling at casinos when one cannot af ford such things is reckless and irresponsible. If one lives alone, perhaps they can take these risks, but most people that own homes have families with children, and it’s not fair to the kids to be ousted from their homes due to their parents’ irresponsible habits. In addition to people being accountable, mortgage lenders should not be enticing homeowners with equity to take out homeowners loans. That only puts more financial burden on families. If homeowners had some equity built up, they could use that if one parent got expectedly laid-off. Equity should be considered a sort of saving account to be used for hard times, not for luxuries. Too many families repeatedly take out home equity loans, resulting in having to pay both a mortgage and a home equity loan. People need to think long term instead of expecting organizations to bail them out or to claim bankruptcy. I truly believe that most economic crises could beShow MoreRelatedHow to Solve the Foreclosure Crisis Essay1086 Words   |  5 PagesThe solution to the Foreclosure Crisis is the implementation of continual, mandatory education classes that must be attended and passed, or penalties will be applied to the homeowners. A little tough love from the lender and the government is nec essary. Just as our parents follow through and continue to teach us throughout our lives, so must the lenders and the government take the time to â€Å"sit† every homeowner down to make them learn and realize that being a homeowner comes with big responsibilitiesRead MoreA Solution To the Foreclosure Crisis Essay955 Words   |  4 PagesThe foreclosure crisis has reached new heights since the all-time high deficit in the economy. U.S. foreclosure rates went up more than 81% and 861,664 families lost their homes to foreclosure in 2008 (Les Christie). Also, 54 households received a foreclosure notice last year (Les Christie). So what is the solution? Bold action is needed to address this serious issue. I suggest a â€Å"real estate pause† for a temporary amount of time, similar to what Roosevelt did with the â€Å"bank holiday†Read MoreSolving the Foreclosure Crisis 972 Words   |  4 PagesIn order to solve the foreclosure crisis, first we must identify and examine the reasons why people are going into foreclosure. The unstable economy which has led to the loss of thousands of jobs is the most obvious reason that people are foreclosing their homes. Without a stable and sufficient source of income, it is virtually impossible to pay back mortgage lenders. The first step we should take to solve the foreclosure crises is to create more jobs so that people can pay their mortgages on timeRead MoreRental Rent : A Rent1653 Words   |  7 Pagesrental privileges, the agreement also appliesa predetermined amount of the rent toward a down payment to ultimately purchase the home at a later date, usually in around three year s. So while a buyer recovering from a recent foreclosure may have blemished credit that prevents them from buying another home immediately through traditional means, renting toown allows that same home buyer to actively work their way toward home ownership right now. A rent-to-own agreement is not without its costs. TheRead MoreThe Foreclosure Crisis1083 Words   |  5 PagesThe â€Å"Foreclosure Crisis† cannot be solved it can only be slowed by programs and policies offered as management tools to curtail the volume of home owners going into foreclosure proceedings. This â€Å"Foreclosure Crisis† should be addressed from the perspective of both the home buyer/owner and the lender. Both sides of this coin are required to create a balance of suggestions, policies and modifications towards the lending practices of mortgage companies and the reiteration of the home buyer’s positiveRead MoreThe Emotional Impact Of Losing A Home On Foreclosure1048 Words   |  5 PagesThis essay directly addresses rebound buyers of foreclosure; this challenge in someone’s life has emotional impacts that can be hard to rebound from. Research can lighten the burden and reignite hope that this too can be overcome. Developing a strategy and le arning how to find and control information is the first step to reclaiming a home. Controlling your spending and managing your money will help you be better prepared to own your next home, think of this as a learning experience. There are manyRead MoreHow to Solve the Foreclosure Crisis977 Words   |  4 Pagesso has led to many other problems, one of which is the foreclosure crisis. More and more people are losing their homes due to job loss or simply poor financial choices. The number of unemployed and homeless is increasing at an alarming rate. Many feel like there is nothing that can be done to remedy the situation, especially when the enormous debt that the United States has already accumulated is considered. There is not just one simple step that can be taken to fix this serious problem, but thereRead MoreSolving the Foreclosure Crisis Essay906 Words   |  4 PagesThe foreclosure crisis going on has devastated many families in the past decade. Foreclosure is basically whe n loans are made, and you use your house as collateral. So when you cannot pay off the debt, your house belongs to the bank. You do not own the house any longer, so the only thing left to do is leave and start over. The only true way to decrease the happenings of foreclosure is for the buyer to be smarter when buying a house. Other people are not responsible for your well being becauseRead MoreEconomic Research On The Economy858 Words   |  4 Pagescollision course of crisis. The measures that I would suggest is next time the economy suffers another crisis like before instead of bailing out Wall Streets and big financial firms, how about bailing out families who helps keeps this economy going. Foreclosures on homes was one of the biggest concerns that the economy didn’t seem to bailout, instead they seemed to wish homeowners the best of lucks in surviving this crisis. If there is a period where the global growth can seem to be a factor is to prolongRead MoreThe Foreclos ure Nightmare1529 Words   |  7 Pagesmade available to mortgage companies and families that were facing foreclosure. However, the government’s action were not 100 percent effective. Many families still faced foreclosure as their mortgage rates were adjusting, and their mortgage payment became too high compared to their income. As people began to face the harsh, and scary reality of adjustable rate mortgages, it became clear government action was necessary to prevent anything like this housing crisis from occurring again. Even though