Foreclosure

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Due to foreclosure crisis, many American homeowners have lost their homes. Homeowners are having trouble paying mortgages and not getting enough home equity to pay for their mortgages. Currently, 20% of Americans are underwater. Foreclosure is causing a rippling effect throughout the U.S. The government plan will help people get out of treading water in foreclosure.

The government program would be worthwhile since so many homeowners houses are falling and being foreclosed upon. Right now the economy unemployment rate is at a 16-1/2- year high rising. Along with one in every eight households are behind their mortgages or in foreclosure. “This is unacceptable in a country like ours” said Nicholas Bratsofolis, refinance manager (1). This show that with the unemployment rate like this, borrowers will be late paying or fall into foreclosure. So many foreclosures and late mortgage payments are caused by job loss and lax lending practice. All these Americans need their loans worked to get back on track. “We saw some sharp pickups in delinquency rates with prime loans and I thinks that’s now going to continue as long as we see unemployment continue to climb among the people most likely to own homes!” says economist, Jay Brinkmann (1). Delinquency rates have jumped 2.06 percentage points from a year ago to a record 7.88%. This shows that all Americans are going to be affected if more people lose their jobs. This shows that more and more Americans are not paying their borrowed loans and the economy is falling hard. Many indebted houses are plunging, so the U.S needs Obama’s Plan to bring homeowners back above water.

As mortgages and foreclosures rise, more Americans will need support from the government. Right now 20% of mortgages are underwater. With negative equity and deteriorating conditions, mortgage risks will continue to increase until home prices and the economy begin to become stable again. This shows that the problem will get worse as house prices continue to fall and get no support. This shows that America needs the government to step in and help because the people cannot handle it by themselves. The $75 billion plan to change loan terms and refinance up to 9 millions homeowners will make a hard time for unemployed borrowers to qualify. This shows that Americans need to act fast and soon before more homeowners sink. This shows that the government needs to turn the housing economy around before they turn the big problems around. That can happen with the stimulus plan. Homeowners need help from America’s big brother as mortgages and foreclosures increase.

Homeowners in America have been in a living nightmare due to the economy crashing and foreclosures approaching. America’s dream was to live as a nation and have life, liberty, and the pursuit of happiness. To get this dream back up and alive, American desperately needs the $75 billion stimulus plan. Obama’s Plan will be a life preserver thrown overboard to all the homeowners in America.





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