The solution to the Foreclosure Crisis is neither fast nor simple. By reflecting on my own experience, I have been lead to believe that the problem is much larger than simply finding a solution. Instead we need to take a step back from what has become of the crisis and begin to mend the damage. The focus of our goal should be education at the individual level through the use of banks, so that borrowers can be prepared to avoid foreclosure, and guided throughout the post-foreclosure stage. Warning individuals of the possible risks and consequences is important in seizing future additions to the Foreclosure Crisis, and by issuing consultation and mandatory classes, individuals can refinance for future investments.
The Foreclosure Crisis is one of the many complications that this nation has endured throughout these past several years. There isn’t just one factor that we can point our fingers to and criticize; instead, we must acknowledge the multiple factors that contributed to this crisis. Still, with so many unrelated causes, it is difficult to pinpoint where to even begin proposing solutions. I could sit here and offer a list of very specific solutions to each aspect of the issue, however I have a major problem with the Foreclosure Crisis: I don’t really understand it. From what I have read and seen in the media, the simplest conclusion of the situation I can gather is that the house prices have dramatically increased and people cannot afford to payback their loans, so the institution then takes over the ownership of the property. The fact of the matter is, I can read articles upon articles on the subject of foreclosures, and still even as an college student of good academic standing, I cannot fully grasp the idea. Even with the amount of resources regarding this topic such as news articles, websites, and financial services, there is just too much specialized information, which makes it nearly impossible for me to completely understand.
I am not a lawyer, I cannot present legal advice for national change, nor am I a financial stock market guru that can predict and anticipate the characteristic of the housing market. I am a reflection, a statistic, an average American born from a family of immigrants, deprived of the full understanding of the situation at hand. Which brings me to this point, if a student with a good education cannot even make sense of the Foreclosure Crisis and its origins, how does that reflect on the 72% of Americans without college degrees (Businessweek, 2005) or even the majority of immigrant families that reside in the United States today? The quickest or easiest solutions that constantly get offered seems to be that the banks should adjust their loans and stop giving out loans, but the reality is that something like foreclosure can really happen to anyone at anytime. Regardless of years of bad choices, or a single traumatic instance, the major problem is that most people do not understand the processes of it all.