This website uses cookies to ensure you have the best experience. Learn more

Solutions To The Foreclosure Crisis And Beyond

1326 words - 5 pages

Solutions to the Foreclosure Crisis and Beyond

“Ster•il•ize : to deprive of the power of reproducing, as in surgically sterilizing cats and dogs.” Such is the definition of this word as listed in Webster’s Dictionary.(1) In looking at all the havoc the financial wizards of Wall Street have laid upon the global economy, it seems appropriate to review this term. Our society has been overcome with notion of “excess” in the past few years. Excessive spending, excessive homes and mortgages, excessive credit, and even excessive eating were becoming the norm. All paid for by excessive spending by consumers and the government. My proposal to resolve the ‘foreclosure crisis’ rests in the meaning of this word. The time has come to sterilize many things, especially money.

Too much money has gotten us into this mess and adding more simply makes it worse. Many critics, such as Jim Rogers of the famous Quantum Fund, are very outspoken about this. He says curing a mistake with more mistakes is complete idiocy.

First I have to make quite clear that there are three types of individuals caught in the foreclosure trap. Those that have been unwittingly been caught in the downturn of our economy and have lost their jobs and source of income. I have great empathy for these citizens.

Then there is a second group. These are people who have been taking unnecessary risks speculating in the real estate market. They are comprised of people who have purchased more than one home, some times as many as five or ten homes, in order to sell them later at a significant profit. Late night television was inundated with commercials offering real estate courses and how to get rich quickly without working.

Finally you are left with the third group of victims. These are people who have purchased homes that were far more expensive than they could afford. They couldn’t afford the mortgage payments, incredibly high real estate taxes, and all the utility bills that came with it. Some of those people didn’t even have jobs. The banks that gave them loans called these loans “NINJA” loans. The acronym stood for “No Income, No Job or Assets.” (2) Ann Coulter, the famous syndicated columnist and political commentator, summarized this clearly:
“Instead of looking at ‘outdated criteria,’ such as the mortgage applicant’s credit history and ability to make a down payment, banks were encouraged to consider nontraditional measures of credit-worthiness, such as having a good jump shot or having a missing child named “Caylee.”
Threatening lawsuits, Clinton’s Federal Reserve demanded that banks treat welfare payments and unemployment benefits as valid income sources to qualify for a mortgage. That isn’t a joke — it’s a fact.” (2)
Heidi Mueller, one of San Francisco’s leading foreclosure agents, gave the following glimpse of the situation
“Drive over the Bay Bridge to East Oakland and beyond and the mirage of well-being dissolves away. Here the streets...

Find Another Essay On Solutions to the Foreclosure Crisis and Beyond

Solutions to the Foreclosure Crisis in Cleveland

1572 words - 6 pages to highly foreclosure-prone borrowers.” Economic conditions and predatory lending in Cleveland have hindered the city from being able to effectively respond to the crisis. However, Cleveland has been successful in its property acquisition tools for revitalization, namely its city land bank. The use of the city land bank has been a key element in the successful efforts of community development corporations (CDCs), but as economic conditions and

Proposed Solutions to the Foreclosure Crisis

1047 words - 4 pages Foreclosure is a growing national disaster in the United States. Every time you tune in to your local news, there is a new family whose house is being foreclosed. Every time you ride around the neighborhood, there is another house up for sale. There are several solutions to this increasing trend including cutting government spending and cutting funds towards unsuccessful government programs, devising financial plans to assist families by setting

Proposed Solutions to the Foreclosure Crisis in America

1815 words - 7 pages Foreclosure, 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

Causes of the Foreclosure Crisis and Possible Solutions

1345 words - 5 pages In addressing the national foreclosure crisis that which we are currently enduring, we must first acknowledge the reason(s) this crisis derived in the first place. In May of 1998, a Washington Post article cites: “Over objections of other financial regulators, [Greenspan, [Rubin and Levitt]] question[ed] sic whether unregulated derivatives contracts should get government oversight like exchange-traded futures contracts do.” 1 It is an economic

Solving The Foreclosure Crisis: Two Solutions

1416 words - 6 pages 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 especially since lenders make it seem so simple in order to trap Joe and make a quick buck, without being aware of how they affect the market. The Solution To solve the foreclosure crisis, two processes must be put into action: one to counteract the

Solution To The Foreclosure Crisis

1131 words - 5 pages My family has been severely hit by the foreclosure crisis. My mother lost her home in 2005 and my father is having problems paying his monthly mortgage and almost went into foreclosure last month. The foreclosure crisis is not just something you see on T.V.; it has invaded our private lives. What I find most disturbing is the massive amount of bailout funds that were given to big companies that were about to go bankrupt. Billions of

Solution To The Foreclosure Crisis

1544 words - 6 pages The solution to the foreclosure crisis requires cooperation among the borrower, the mortgage lender, and the federal government. Current proposals by President Obama’s administration call for federal government intervention through interest rate subsidies for refinancing stressed mortgages, guarantees of mortgage-backed securities buyouts, and funding to fill gaps in reduced monthly payments as an incentive for lenders to work with borrowers in

Economics and the Foreclosure Crisis

2060 words - 8 pages continually repossess the homes of failed loan recipients. This is an ongoing process, and it shows little hope of significant improvement. As a result, one of the biggest questions facing the nation today is: How do we fix the foreclosure crisis? The truth is, it is impossible to wave a finger and "fix" the problem. This method has been tried in the past; the government grants funding, provides income, and spends non-existent money in an effort to

The Solutions to Climate Crisis

860 words - 4 pages   As we human beings have entered the Anthropocene, a new geological epoch dominated by humanity. The relentless pressure we have put on our planet has increased daily at a speedy pace, which has resulted in an unprecedented destabilization of climate change. What’s worse, our disagreement with climate change has left the planet in an even more dangerous crisis. The economic imbalance between the developed countries and the developing countries

The causes and solutions to the European sovereign debt crisis

977 words - 4 pages The European sovereign debt crisis, started from Greece, Ireland, Portugal, Spain and Italy lately, where the rating of their sovereign debts have been downgraded, has indicated an impending threat to the recovery of world economy and potential renewal of global financial crisis in the future (Anand, Gupta and Dash, 2012). A sovereign debt crisis is an economic and financial problem resulted from the perceived incapability of a nation to pay its

The Water Crisis and Solutions

1368 words - 5 pages consumption. Something must be done if humans want to even survive in the near future: the lack of clean drinking water is already the number one cause of disease in the world today. The first step is worldwide awareness of the water crisis: governments and the citizens they govern worldwide need to know about this problem and be actively involved in solving this problem. One of the best ways to solve this problem would be for these cities or countries

Similar Essays

Solutions To The Foreclosure Crisis Essay

1111 words - 4 pages Federal Deposit Insurance Corporation, houses stopped selling, people were laid off in the financial industry, the stock market deteriorated, and realtors were not making any commissions because home sales stopped dead in their tracks. Worst of all people searching for The American Dream are facing foreclosure. I think that we need to get back to basics as far as the mortgage crisis is concerned. During the last 15-20 years there have been too

Solutions To The Foreclosure Crisis Essay

1004 words - 4 pages The foreclosure crisis is tearing away at this economy causing people to loose their house and be in national debt for long amounts of their life times. More people are filing bankrupt because they can’t afford to pay the adjustable interest rates that they set when signing loans for their houses. Now the economy is at a vast down turn, slowly turning up to becoming better internally, but still people are homeless due to their homes being

Possible Solutions To The Foreclosure Crisis

1209 words - 5 pages The purpose of this writing is to analyze the foreclosure crisis and offer some solutions to keep people in their homes and satisfy the financial accounting records of the banking industry. With more lost jobs on the horizon and fluctuating adjustable mortgage rates, the foreclosure crisis continues to plague America. A recent report from the Mortgage Bankers Association reveals that 14% of loans are behind or in foreclosure. This is

Solutions To The Foreclosure Crisis: Refinancing

1056 words - 4 pages Because homeownership is central to a family’s security, well-being, and long-term asset accumulation, the foreclosure crisis must be attacked aggressively by Federal and state governments. Critics of stimulus spending argue that the worst of this crisis is over, but many trustworthy indicators suggest that foreclosure rates will not return to pre-crisis levels for several years. In order to slow foreclosure rates and begin to repair affected