Solving the foreclosure crisis will not be an easy task. I believe there is no quick fix or sure solution to fix this far-reaching crisis. There are however, steps that every individual involved in the foreclosure crisis can take towards improving the situation. People that the foreclosure crisis does not directly affect should still rethink their lifestyles as well, so that the crisis does not continue to grow.
The bail outs given to the banks were a candid approach to preventing the banks from failing, but there were still thousands of Americans failing as well. I believe the banks failing is a projection of the state of the American people. I think that if anymore stimulus or “bail out” money is given that it should be given to the people. The money wouldn’t have to be given directly to the people, but rather the banks that they owe money to. There are programs presently that help, but I firmly believe more should be done for the citizens not the banks. Allocating the money to the people will not save all of those in danger of foreclosure, but it would ensure the banks would receive more of their payments. There are people out there that are too far gone to be saved, but there are others out there that can be saved and need actions taken on their behalf.
I believe that some of the foreclosure cases are due to poor financial decisions. Buying a home is a large investment and for most a large debt as well. It is a purchase that should be made keeping several things in mind. Always keep a realistic budget on your mind so you don’t go beyond your means. Keeping up with the Jones should not be a priority, but rather keeping shelter for you and your family. Today a lot of people have wants that exceed their budgets, and because of that they usually end up in debt much deeper than someone who sticks to their budget. Budgets require a lot of self discipline but with the thought of keeping the roof over your head it should be easier. Stick to putting things on the budget based on needs, not wants. We as a whole nation are over indulging in anything that we desire and if even one individual can remember that living simpler will ensure a brighter future. Then we have begun to climb out of our old bad habits.
Another step all Americans involved in buying houses should take is to get as much knowledge as they can about all that it in tales. Knowledge about how mortgages and the housing market operate will give you an advantage. Mortgages vary and knowing how they work will help you make the decision that suits you. Knowledge about real estate and finances is one of the best steps that an individual can take. For instance variable rate mortgages seem like a good idea with its initial rate, but as it begins to vary it can be costly. Fixed rates may be more expensive in the beginning, but may actually be cheaper in the long run. Doing the research to determine which mortgage...