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

My Proposed Solution To The Foreclosure Problem In America

1429 words - 6 pages

I remember when I prepared to buy my first home in 1997, people said it would be a laborious process. To this day, I cannot figure out what people were referring to as laborious. The mortgage officer provides the list of all documents that need to be submitted. I submitted the documents in 1997. If there were questions, I answered them. If there were glitches, I took care of them expediently. During my closing, figures drastically changed from what was on the original good faith estimate. I interrupted the closing to ask for an explanation. No explanation could be provided. All stakeholders in the room were looking at one another. I announced verbally that no person sitting in the room would get paid if my closing figures didn’t reflect the good faith estimate. Somehow the stakeholders in the room restated my figures back to what was provided on the good faith estimate and I moved into my first new home. My loan was approved and the home buying experience was simple.

Below, I am proposing a solution that involves accountability and responsibility from all three stakeholders involved in the mortgage process.

Proposed solution: Consumer perspective

a) Whether it’s the purchase of a first home or the 20th home, each loan applicant should be required to explain their home loan either verbally or in written form to a third [regulatory] party. The third party will have the final loan documents in hand and will simply ask a series of questions and receive the answers to assure the applicant explicitly understands what they are engaging in.

b) I understand, as the consumer, we are required to provide a lot of personal information. However, I learned a simple principle buying my first home – don’t allow the relationship with the other stakeholders to become too familiar and personal. Keep the entire home-buying process an objective, business relationship.

c) Since the home buying experience is emotional, the person looking for the home should invite two additional, non-related people to review the final home selected and the financial terms of the transaction. These two people should be objective and have a c-o-n-s-i-s-t-e-n-c-y in making sound, wise financial decisions in their own lives.

d) If consumers aren’t responsible to complete the documentation for a new home or foreclosure modification, they have chosen to suffer needlessly. So the banking industry can accurately report to the federal government, they should state the metrics at the beginning of the process. For example, your loan can be modified in a minimum of 30 days or a maximum of 90 days. If you do not complete the requirements on time, you will be reported as part of the American population who had access but chose not to meet the necessary requirements.

e) It’s a fact that almost half of some ethnic groups appear to have poor financial literacy, which should be learned at home. Since it is not, before any consumer receives a loan, mortgage, credit card, gas...

Find Another Essay On My Proposed Solution to the Foreclosure Problem in America

Proposed Solution to the Foreclosure Crisis

1310 words - 5 pages need to eventually be incorporated as a comprehensive solution. It was no accident that my community service efforts began while studying the present condition of my city and previous efforts to combat the blight created by both abandonment and foreclosure. With thousands of sold to state tax deeds and little State legislation in place giving cities command over properties within their jurisdiction, millions of taxpayer dollars are wasted in an

Proposed Resolution to the High Foreclosure Problem

1989 words - 8 pages foreclosure because the consumer has no financial interest. Proper investor guidelines specific to qualifying with multiple mortgage payments could eliminate significant reduction in borrowers walking away from an unoccupied home pending sale. These are some of the ways that I feel would make an impact on reducing foreclosure numbers in America today.

Proposed Solutions to the Foreclosure Crisis in America

1815 words - 7 pages speculation, which essentially creates value out of nothing. In a short time, the economy would be restored to a state much more stable than even its original state. Foreclosure isn’t just a problem, it’s a crisis. It has destroyed much of the American economy, and will continue to do so unless resolved. The solution for fixing such a mess is simple, but radical. First, we must eliminate the entanglement of the government in economic affairs

Trade-Down Home Exchange Program: My Proposed Solution to Solving the Foreclosure Crisis

1369 words - 5 pages refinance loan packages. I welcome this opportunity to voice my concerns and ideas in regards to this foreclosure battle. Understanding what caused this failure is the first step to fixing it. Real-estate and mortgage professionals are under extreme pressure to ‘make the sale’ even if it isn’t within the buyer’s budget. Minimum down-payment loans with high loan-to-value ratios added to the default risk because equity was not building in many of

The Foreclosure Problem in America

1079 words - 4 pages solving the foreclosure problem. This is crucial to securing not only my future but the future of all the other young adults making their mark on this county. After all, one day it will be up to my generation to lead this country and we need to preserve it for our children and our grandchildren.

Unique Solution To The Foreclosure Problem

995 words - 4 pages Estate Investment Revitalization Program offers a unique solution to the foreclosure problem currently being experienced in the United States. By bringing together investors and distressed homeowners in a mutually beneficial arrangement, REIRP resolves issues inherent in loan re-modification programs. Furthermore, it gives current homeowners the ability to sell their property, something the Deed for Lease program by Fannie Mae and other programs are

Putting an End to the Foreclosure Problem in America

1089 words - 4 pages points. This article was written one year ago and the foreclosure situation in America is fast coming to the economic double curve in the financial down turn; the phenomenon where, just when things are improving and getting better, they suddenly collapse again. We can expect a massive dive in our personal financial circumstances and the economy as a whole, as the economic comeback is too little too late. By the third quarter of 2009, an amazing

Steps to Solving the Foreclosure Problem in America

1259 words - 5 pages unemployment as well as the high increase in foreclosures around the country. I, along with many other American would just like to be reassured that our future will not be in fear of how to make the next payment on a home. Reassurance that a home can be purchased and not fear that if a decrease in yearly income occurs, foreclosure will shortly follow. This problem cannot be swept under the rug anymore but addressed promptly and eagerly.

The Punishment of Probation- A Proposed Solution to the Prison Overcrowding Problem in England

877 words - 4 pages Since 1993 the population within prison is increasing leading to majority of prison overcrowding this meaning there is now a higher percentage of people in prison here in England than any other country in Western Europe (Howard League 2006). This is leading to re-offending as offenders are not able to receive individual rehabilitation because there are too many offenders to rehabilitate. As this becomes more of a problem in today’s society the

More Than Housing: A Double-Ended Approach to the Foreclosure Problem in America

1609 words - 6 pages , tinkering just with the housing market will only result in delaying the foreclosure crisis for another few years. The goal of my solution is not to delay foreclosure, but to completely redo the economic system so banks will not have to foreclose. The real problem of foreclosure is not solved in the housing market. The real problem is people do not have the money to pay for their homes because there are not enough jobs in America to sustain all

Exploring the Foreclosure Crisis and Options for Amending the Problem in America

1085 words - 4 pages should be different based on factors like how many dependents the person has, if they have children in college, or if they have special needs. “Selling” mortgages may be one of the greatest ways to get rid of foreclosures. This would directly reduce the amount of foreclosure; when someone feels that they will not be able to pay the mortgage anymore or in the near future, lenders should transfer the loan from the person who cannot pay anymore to

Similar Essays

My Proposed Plan To Alleviate The Foreclosure Problem In America

1139 words - 5 pages 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

Proposed Solution For Solving The Foreclosure Problem

1463 words - 6 pages My proposed solution for the foreclosure problem has several parts. They include eliminating and legally banning interest only loans, mandatory loan modifications, government tax incentives to stay in a potentially foreclosed home and consumer education. Many years ago the mortgage companies created the thirty year home loan. It seems like this extended payment plan would benefit the homeowner by allowing more time to pay for the

Proposed Remedy For The Foreclosure Problem In America

1265 words - 5 pages The foreclosure problem today in America is one of the worst economic crisis that has demonised the American economy in recent years. Like any other problem that has a solution, this problem can also be remedied too. To remedy homeowners from foreclosure risks, homeowners can approach this problem by using the structural adjustment mortgage or SAM option, using the home short sale option, or they can just accept the foreclosure of their

Proposed Plan To Ease The Financial Crisis And Foreclosure Problem In America

1715 words - 7 pages way out for many of these homeowners, leading to the foreclosure crisis America now faces. The next step in finding a solution is defining what an effective solution ought to accomplish. The primary objective is a stable housing market, with drastically reduced foreclosures. The current crisis cannot be fully stopped in the short term; therefore the focus must be upon the long term. Government must institute new policies that prevent