Every three months 250,000 families enter into foreclosure. “One child in every classroom in America is at risk of losing his/her home because their parents are unable to pay their mortgage.” (Market Wire)These facts are not only shocking and true but are continuing to grow. It might be time for the government to step in and help the homeowners of America. In an effort to solve the foreclosure dilemma we need to look at the problem then try to fix it. We can’t fix all problems that cause foreclosure but let’s look at how we can help to decrease the ever rising foreclosure statistics. I see negative equity in homes as being a large part of the foreclosure problem. There is a way to focus on helping people keep their homes. Help can be given to the people who can not sell their home or can not afford it any more because they owe more than the home’s value.
There has been help from the government to help financial institutions, new home owners, and even incentives to buy a new car. This has to of helped the banks, and the new home owners, but foreclosures are still happening and homes being foreclosed on is still on the rise. Nothing has been done to help the homeowners who are fighting to keep their homes. If the government could offer tax breaks for people who are still making their mortgage payments, but home value has decreased. This would be a start in helping people who are struggling to keep their homes. I think the government needs to help people like this before they loose their home to foreclosure.
Instead of offering incentives to new home buyers, why not help the homeowner keep their home. It would be more helpful for the government to provide assistance for people to stay in their homes instead of offering incentives to new home buyers. New home buyers have the market of the cheapest housing that America has seen in a long time, in addition to low interest rates. I think it is time to help the people who have had their home and are working hard to make ends meet.
The 2008 HOPE home modification started to help those in need that qualify, but this is ultimately up to the financial institution. This alone may not be enough for the home owner. With home values plummeting, and some homes purchased with prices over inflated people may owe far more than the home’s value. In this case it may be tempting for the homeowner to walk away from their mortgage. Saying this I think that President Obama needs to look at this serious dilemma. I think there is an answer that can help all involved, the financial institutions, the homeowners and the economy.
I propose that the government starts with offering a tax break to those home owners whose homes who have greatly deprecated. The government also needs to mandate lenders to revise the home loan and decrease the principle amount of the loan to what the home is now valued at. If they revise the loan by decreasing the principle amount at a low interest rate this will help many...