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Proposed Plan For Resolving The Housing Crisis In America

2197 words - 9 pages

The United States’ foreclosure and housing market problems have been well-documented in recent years. This issue has only been heightened by the 2009 economic downturn. Can the sky-rocketing foreclosure market truly be blamed on the recession, however? Can the issue be pinned down on the masses of people who have lost their occupations? Surely many of the cases can be traced back to these harsh conditions, but many more, most likely, can be attributed to something else. Foreclosures are not a new phenomenon and have been a part of American society for years. So, in order to determine a plan for how best to reduce the number of American families losing their homes, it seems best to look backwards rather than simply at the present.
The crisis facing our nation cannot be solved by short-term thinking, nor can the housing issue be resolved by a determination to spend more money to hope for a better market with lower prices. Ensuring that interest rates stay low does not in any way ensure that foreclosures will decrease; neither does it dictate that they stay the same or even rise higher. A low interest rate is a wonderful feather in the hat of the prospective buyer at present, but it will do nothing for them in the future if they have little or no money in reserve to fall back upon when a financial crisis, be it large or small, invariably wanders into their lives. One broken water heater or an unexpected flat tire can be enough to make many families one payment late on their mortgage, and even falling behind on just that one payment can become very difficult from which to recover. The issue of the foreclosure does not hinge on loan forgiveness or loan assistance, rather, it hinges upon a family making firm, stable financial decisions before ever making the decision to purchase a home. It begins with education.
Early financial education, beginning in late elementary school, is the number one factor to consider when dealing with the current housing market. Though it may not immediately impact the economy for the better, the far reaching consequences will be much greater than simply writing a new homeowner a check for $8,000 that they may or may not have earned. This financial education will focus on a far-ranging plethora of topics, but in regards to buying a house specifically, there will be three main pillars: the importance of a savings account for emergencies, the importance of living by a budget, and a more expansive area of loan and interest education.
The education of the masses must start early on for many reasons. One is that by the time most citizens are old enough or financially established enough to buy a house, their spending habits and mindset have been locked, and it would take a great deal of change to undo them. It will be much easier to produce a more financially savvy buyer if the principles have been instilled since youth. It is suggested that a person is unable to become a native speaker of a language once a certain...

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