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Solving The Foreclosure Crisis Essay

1060 words - 4 pages

In order to solve the foreclosure crisis, first we must identify and examine the reasons why people are going into foreclosure. The unstable economy which has led to the loss of thousands of jobs is the most obvious reason that people are foreclosing their homes. Without a stable and sufficient source of income, it is virtually impossible to pay back mortgage lenders. The first step we should take to solve the foreclosure crises is to create more jobs so that people can pay their mortgages on time. Its easier said than done, but who said it would be easy. The way to create more jobs and a moral society is through free college education. We spend billions of dollars building penitentiaries and fighting wars which to me is a waste of precious monies. This money could go into providing free college education nationally. I know a lot of people who had the potential to be far more productive in life but, they lack the education and skills required to fulfill their dreams. They had to settle for jobs that pay low salaries which makes it hard to pay their mortgage. Most of these people with these low salaries have been laid off their low paying jobs due to the recession, which makes it twice as hard to pay a cell phone bill, let alone a mortgage. Providing free college education nationally will definitely help make society more productive and the average salaries will increase nationally. Investing in education and saving recklessly spent money is the first step in solving the foreclosure crises.
The second step that should be taken in order to solve the foreclosure crises is to instill government run programs for those in need of money to help pay their mortgages. Section 8 virtually pays all of the rent of lower income people. My question is, why aren’t we helping the people who actually work for their money also. We all are in dire times, not just the people on welfare and Section 8. Providing the needed money to everyone who needs it may create equilibrium until the economy gets back on track. When people are again able to pay their bills, that program needs to be stripped away from them. This will help thousands of people prevent foreclosure of their homes.
The third step that should be taken to stop the foreclosure crises is alternate payment plans for home buyers. Not everybody can pay the minimum payment required for their mortgage. I believe that the amount of money due for someone’s mortgage payment should be based on their yearly salary. If someone makes more money, there mortgage payments should be higher than a person with a lower salary. I am not implying that someone with a higher salary should be obligated to pay more money for the blue house on 386 South 9th Street than a person with a low salary would pay for the same house. I am saying the rates should vary depending on the salary of that person or persons. Ex. I make 80,000 dollars a year but, my friend makes 25,000 dollars a...

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