Solving The Foreclosure Crisis Decrease Interest Rates, Create Jobs, Financial Education And Stimulus Programs

1171 words - 5 pages

Foreclosure is an important issue in the United States and needs to be ended or decreased rapidly as soon as possible for the sake of America’s economy. The foreclosure of homes has decreased the state of the economy, and rendered millions of Americans homeless. There are four key solutions that will stop foreclosures in the United States and able millions of American to keep their homes. The first solution is having banks lower their interest rates for all citizens who are in financial need of an interest rate deduction. The second solution is creating jobs that are able to sustain through an economic crisis. The third solution is for states and towns to conduct public seminars on how to manage and budget ones finances during financially herd times. The final solution is for the government to create stimulus programs to prevent homes from going into foreclosure.
Having banks lower their interest rates for all citizens who are in financial need of an interest rate deduction is a solution that will stop foreclosures. How one would get the banks to lower their interest is by explicitly explaining to banks that decreasing interest rates will increase their profitability, because it will attract more citizens who want to be home owners and are concerned about purchasing a house due to the state of the U.S’s present economy. Also, by explaining to the banks that decreasing the interest rates will increase profitability, because it will cause bankruptcy to decrease due to affordable interest rates for citizens, allowing the bank to receive all and full payments from citizens who took out a home loan. Citizens purchasing homes due to low interest rates will not only be an advantage to the banks but for the economy, and citizens looking for work as well. Many jobs that will be available for citizens who are looking for work include landscaping, cable, internet, and telephone service providing jobs as well as housekeeping, and plumbing. The disadvantages of having banks lower their interest rates are, people may feel less obligated to pay their mortgage payments on time because the interest rates are lower, despite the jobs that are available through people owning homes there still may not be enough jobs to go around causing there to be very little change in the amount of homes in foreclosure.
Creating jobs that are able to sustain through an economic crisis will stop foreclosures because if citizens lose their jobs in an economic crisis they will be able to quickly find another job. This would be beneficial in the fight to end foreclosures because people would have the funds to pay their mortgage and any other financial obligations. How one would go about creating new jobs is by developing new technology, products, and services that would change the way people live their everyday life while helping them to save money. Hybrid vehicles are an example of a new technology that has currently kept and created new jobs...

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