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Solving The Foreclosure Crisis Essay

1004 words - 4 pages

The foreclosure crisis is a very sensitive issue that needs to be acknowledged urgently. This particular issue has put a lot of people in danger by losing their homes. When being in a predicament like losing one’s home it is all about responsibilities. Once a person has been notified that their home is in the process of foreclosure and they only have but so little time to pay their mortgage, this is when compromising comes into action. It is imperative that needs come before wants when in a position of foreclosure. Solving the foreclosure crisis is a very big assignment to do but it needs to be handled by the government. The government plays a role in everything including foreclosing homes, so with the government’s help it will improve the foreclosure crisis tremendously. The government can make a system specifically geared toward helping those who are going through the foreclosure crisis. With the help of the government, the rate of the foreclosure crisis will decrease by making it less complicated to pay a mortgage bill. Several ways to make it easier to pay the mortgage bill would be to extend the due date, create more jobs, and decrease the late fees along with interest rates.
Extending the due date to every two months instead of every month would be better for those who have difficulties paying on time. Foreclosure is enforced by lenders who have ownership over properties. It is the responsibility of the lenders to notify those who are late paying their mortgage. Before foreclosing the homes, lenders give out warnings to remind borrowers to pay their bill, if not the property is taken. The borrowers are given thirty days to pay the mortgage including the late fees. One of the main reasons people experience foreclosures is because they have a hard time paying their mortgage by the due date. If the date was extended it would give people more time to save up money for the mortgage bill. Thirty days is not enough time to pay the bill for most people, whereas given two months to save up money to pay the bill in full would be more convenient for most Americans.
In addition, to extending the due dates for paying mortgages, creating more jobs is also an excellent way to improve the foreclosure crisis. More jobs will decrease the amount of people losing their homes. Having a job is the main resource in paying for the mortgage bill, so if more jobs were to be created there would be fewer foreclosures. The economy is in a recession due to minimum jobs. In the year of 2007 the unemployment percentage was 4.9 % and in the year of 2009 the unemployment percentage is 10%. So comparing the years from 2007 to 2009, within a two year period the unemployment percentage has increased enormously. Other rates such as the crime and robbery rates will increase tremendously due to the lack of job availability. A lot of people will do whatever it...

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