Solutions To The Foreclosure Crisis Essay

1004 words - 4 pages

The foreclosure crisis is tearing away at this economy causing people to loose their house and be in national debt for long amounts of their life times. More people are filing bankrupt because they can’t afford to pay the adjustable interest rates that they set when signing loans for their houses. Now the economy is at a vast down turn, slowly turning up to becoming better internally, but still people are homeless due to their homes being foreclosed. These people can’t afford to pay these adjustable interest rates. When citizens go into sign papers they are not at a full understanding of what their interest rates are capable of doing and how they are capable of shifting up or down. We need to transition to a fixed interest rate use only.
I have a plan for America’s foreclosure crisis and it is spelled out like this lets stop with the shady (metaphorically) un-honest epidemic that loan officers continue to spread to the citizens, and lets teach these citizens about what they are signing up for. What is the good that comes from loan officers making a sum amount of money for the time being, while signing away the banks money to confused and soon to be befuddled citizens? To their (loan officers) dismay they will most likely end up having to pay back that money or be at risk of loosing their jobs due to banks closing. If these citizens were actually shown what these loans will do throughout the loans lifetime (all the ups and downs of the interest rates) then they might not sign up for them, knowing they will not be able to pay the adjustable interest rates that banks rise and drop ever so often. Due to these loans not being paid back the bank has to take their houses and now they are out of thousands of dollars, left with hundreds of empty houses on their hands. Let’s teach these loan seekers what the loans are saying so that they can make right decisions, the bank won’t be out of thousands, and house won’t be foreclosed due to people not being able to afford it.
People have to come around to realizing that these loans are not free or coming off trees, it they understood that money must be paid back then they would not borrow what they can’t afford to borrow. That is why it is a better idea to warn people of what they are getting into then (metaphorically) leading the sheep blindfolded into a fire and expecting them to find their way out alone, and when they don’t find out the wolves (banks) attack and prey down on these helpless sheep (loan seekers). This behavior is wrong. It is time to have something balanced so my next paragraph sets a fair and balanced scale that banks and loan seekers can be weighed by. If we do not fix this foreclosure crisis then America will never...

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