Foreclosure Essay

June 17, 2009
By
Americans have been hit by a wave of foreclosures and job losses, the honest American and the lazy, irresponsible Americans alike. One in eight homes is at or near foreclosure, and twenty percent of all homes in the nation are underwater in value. Coupled with the fact that unemployment is at a 16 year high, President Barak Obama launched a quarter trillion dollar bailout plan. “The struggling homeowner” has become an issue to everyone on their block. Even if these people were not plagued by a ridiculous 300 page loan document, they could simply be underwater and behind on their loan, and simply need some help. People now are suffering massive lay-offs, and many people need government intervention.
Millions of people in America will be helped by president Obama’s bailout plan. America as a whole will see relief from the home crisis by a homeowner bailout. “U.S. president Barak Obama will send 275 billion dollars to work towards standardizing modifications on distressed loans”, States Lynn Alder. If 9 million people in American can save 400 dollars a year, this country will see a massive increase in the spending of the people, restoring people inside stores and increasing the amount of spending possible in America. Not just the foreclosed homeowners will benefit from this plan, but the banks could also receive a lot more in return than just letting people lose their houses, but allowing them to work out a plan to replay their loan. If the loan is worth more refinanced than the house the people are sitting on is worth, the bank would receive more money for simply reworking the loan with homeowners. In addition to simply increasing profit, then government included in this plan a straight profit for banks and lenders that choose to rework loans. Overall, this bailout will help Americans, homeowners and lenders alike.
Americans need government intervention to save our economy from the quickly failing home market and wave of job losses. There are “sand states” as they are called, where the housing market has gotten so rotten, that the house prices have drop to the tune of 50% or more! These state have been hit the worst by the failing economy, and homeowners have began to mail in their keys because they are stuck in a dead end loan which they can’t afford, and their house is worth less than their mortgage. If the government would be able to target these states that are failing so hardly we might stabilize the housing economy. These states, California, Nevada, Utah, and Michigan offer housing so cheap that other places can’t compete, so they lower their prices. It is a deadly cycle, to the point that people from china and Europe are coming into America and buying houses in bulk, sometime entire city blocks. If America can’t get some basic government help, one of the biggest points of our economy might drop dead right before our eyes, giving us an even larger problem to deal with, a depression.
55% of all subprime mortgages are underwater, and risk losing everything that they have. If the government doesn’t help, the country could risk sending its entire economy into a deep depression. By helping one homeowner, we could save as many as 10 people on their block, saving borrowers from losing value on their house because there is one single person on their block couldn’t afford the mortgage payment. If lenders and borrowers allow the housing market, one of the biggest pillars of our entire economy, to fail, we let this storm come to overtake America. Simple plans put in place could save us, if people accept that the country as a whole is in trouble.





Post a Comment

Be the first to comment on this article!

bRealTime banner ad on the left side
Site Feedback