"How to Solve the Foreclosure Crisis"
The foreclosure crisis in America isn’t something I just hear about on television or in my high school Economics class. It is something that my family and I have been living through for the last few years. It is not just a problem for banks and mortgage companies and politicians. It is a problem for real people like me.
According to the Center for Responsible Lending, 2,400,000 foreclosures are projected to happen this year. I live in Arizona, a state that has one of the highest percentages of its citizens in some form of foreclosure. But, those statistics only list the number of houses that are being foreclosed. They don’t tell the actual number of “real” people who have lost their homes or fear they will lose them. These numbers don’t tell about the parents who don’t know where to turn or the children who are afraid they’ll be homeless. .
My story of foreclosure began a few years ago when my dad was laid off. My mom went back to work part time but it took my dad about a year to find another job. Then he got injured on that job and is now on social security. Although my mom now has a full time job, we have never been able to catch up with our house payments. We heard about programs to help people like us but when it comes to really doing anything, these programs seem to fall short. In fact, I read that the bank that holds our mortgage helps a very small percentage of their customers who face foreclosure with refinancing available under these programs.
I think being part of the foreclosure statistics makes me better able to see the problem from the inside and, thus, suggest real world solutions to the question of how to solve the foreclosure crisis. First of all, I would create a new system to allow for greater communications in a timelier manner than the system now in place. I would then have an ombudsman to review all foreclosure requests prior to their being carried out. The next step in my plan would be the creation of a fund from taxes on executives whose companies deal with home loans and foreclosures to be used to assist families going through foreclosure. Finally, I would ask Congress and state legislatures to appoint task forces to look into other suggestions to help solve the foreclosure crisis. But, these task forces wouldn’t be made up of millionaires and politicians. Their members would be everyday people—men, women, and children—who are being affected by this crisis.
The first step of my plan would be to improve communications between the home owner and the mortgage companies and banks involved in the foreclosure process. My plan would also put a time limit on the process. My dad tried to get our home refinanced but got no response after trying for months to communicate with the bank that has our mortgage. He finally had to contact a local TV station to step in before the bank would even talk to him. My plan would require mortgage...