Prompt: “How to solve the foreclosure crisis”
America. The American dream. Born in 1776 and refined through these many years, every American citizen has certain inalienable rights. These rights are confined in the American Constitution and all the laws since. One great American dream is home ownership. What great solace in the ability to provide your family with the basic comfort of shelter; a home.
After World War Two, the American servicemen begin coming home; they needed jobs and homes for their families. Cities and towns spread across the nation, with many new neighborhoods popping up. First came the baby boomers, then Generation X, and now Generation Y. The housing industry flourished and life was good.
A crisis struck. The economy went down, banks started failing and the American dream was in peril. The foreclosure crisis struck. This crisis is indeed a grave problem, affecting Americans in all walks of life, in all income brackets and in rural and urban areas alike. This crisis touched tens of thousands of Americans and may or may not have reached its peak. What’s a nation to do?
The Federal Government can step in and step up, as they have done for the banking crisis, the health care crisis, the insurance crisis and others. They can put real dollars to real use with people in foreclosure. They could use education dollars and give to people in need. They could take the first time homebuyers program and use it in conjunction with foreclosure. They could ask Habitat for Humanity to become involved. They could use inner city revitalization money as part of the answer to the crisis. They could use Parks and Recreation money to help keep people in their homes. They could begin a public/private lease/purchase option with existing landlords.
Education is a great thing. People get ahead in their lives with education, but too much education is a waste of dollars. I believe they should use less money on traditional education and more money education programs that teach homeowners about loans, mortgages, interest rates, points, etc. By putting money into a real program they will help homeowners who are heading into trouble. Why try to educate them after the fact? They are still losing their home.
Both the federal and state governments have first time homeownership programs available. If these types of programs are expanded to include a larger eligible group, foreclosure numbers might come down. These programs would generate better interest rates, less closing costs and points and lower down payments for these types. This way, less people who want to own would not be at the mercy of unscrupulous mortgage brokers who charge high fees, higher interest rates, lie about terms and wont be “sucked” into a mortgage that they cannot afford. They would know that their monthly payment would stay the same for the length of the original mortgage. To get banks involved in these programs, start with the banks that used...