Foreclosure is a rising problem, and quite frankly solutions to this problem seem bleak and nonexistent. This is a problem that is affecting more and more families day to day. This is a problem that can no longer be ignored. American families should not be living day to day wondering when their home will be foreclosed, or worry about how they will pay their next mortgage payment. Nonetheless, this is what is happening, and little and behold it seems as if nothing is being done to help families in this time of crisis. Why is nothing being done? Why is the government, the president and even our own representatives not helping the common American? How much longer do Americans need to struggle without receiving any type of assistance?
Within the past five to ten years, many people applied for mortgage loans and have received them. Some of these people were not completely qualified to receive these loans and as a result they fell behind in payments and eventually it resulted in foreclosure. In order to prevent this event of foreclosures in the future the mortgage systems needs to change, sooner rather than later.
Firstly when a person is applying for a mortgage loan multiple things should be looked over. Initially, an application should be filled out with detailed information on the following subjects, personal information, i.e. name, address, phone number, age, relationship status, children, job, income and a detailed explanation of monthly and yearly expenses, any debts in addition to information regarding current or previous loans (approved, denied and how much). This information will help to decide whether the person will be fit for a loan and if it can be fit into their budget when paying it off. This information would be vital to banks to decipher if the person is suitable for the loan or not. The information is crucial; it also helps to decide a payment plan and the monthly bill and or mortgage.
The next step would involve a full credit examination of the person or persons applying for the loan. This information is vital to the process. A person with a good credit score, that’s a score of at least seven hundred or more, would automatically qualify for the loan of which they are applying for. A person with a credit score lower than seven hundred but higher than five hundred would most likely pass the submission of their application, but stricter guidelines would be implemented. These guidelines may include a stricter payment plan with better clean cut rules and guidelines. For those who have credit scores less than five hundred should not be allocated a mortgage loan. Their loan application can be in stand-by for up to five years until their credit score is high enough to be considered for a loan. If this were to occur the applicant would receive a notice explaining those circumstances.
The following step will include a meeting with the lender and the expected home buyers. This meeting will entail how much money is going to be...