Proposed Options For Ending The Foreclosure Crisis

1435 words - 6 pages

I really didn’t know much about foreclosure. So I did some research. I asked many people of many different ages from eighteen to sixty-two. A lot of people said,“ Just pay the bill”, but that is often easier said then done. Some said they got in over their heads and were not able to get out. Some also said that their income and credit look good on paper but did not cut it when it came to paying their bills. Some told me their income had changed due to losing their jobs or having a spouse pass away. There are many circumstances that are out of people‘s control. Attempting to gain some control over the situation often is better than just praying that nothing bad will happen.
I figure the best way to stop foreclosure in the United States would be having options when things get tough. It’s human nature to think “wow I have good credit and I make good money” and not to look deeper into their finances. To have more then the neighbor, keeping up with the Jones or Smiths no longer cuts it. We all need someone to say you can’t afford a sixty-thousand home but you can a thirty-thousand. To have sense of security and what you actually can afford at the beginning can help a person know that they are able to bounce back once things get tough. We all need help once or twice in our life.
If there is someone who is looking for a home that costs sixty-thousand dollars and they make nineteen-thousand dollars a year and their credit looks good on paper many people would stop there. I feel as though the finance companies should look deeper into the monthly payment to determine what the family or person will be able to afford in the long term. If you look deeper into the profile of a family, and see they have two credit card payments, two car payments, and on top of that they have household expenses light, gas, food, childcare costs and repairs. Also they doctor bills that have to be paid and medical expenses that are required each month for them to survive. So after paying all of their monthly bills the family’s modest sixteen-hundred dollar a month salary is now a measly two hundred dollars of spendable money for the month. It would appear to be obvious that they could not afford to spend seven hundred dollars a month for a mortgage.. That is why it is important to look deeper than just income and credit scores. I believe that it would be beneficial to make sure and take their monthly income and subtract all of their average monthly bills including household food and transportation expenses including gas and car repair bills. After using this information it would be easier to determine what the family could realistically afford for a monthly mortgage payment. The family mentioned previously may want a sixty-thousand dollar house may, in reality, be only able to afford a house that costs thirty-thousand dollars. So purchasing a house that is clearly beyond their income means will end in foreclosure. By looking realistically at their financial situation and...

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