Possible Solutions to the Foreclosure Crisis Essay

The purpose of this writing is to analyze the foreclosure crisis and offer some solutions to keep people in their homes and satisfy the financial accounting records of the banking industry. With more lost jobs on the horizon and fluctuating adjustable mortgage rates, the foreclosure crisis continues to plague America. A recent report from the Mortgage Bankers Association reveals that 14% of loans are behind or in foreclosure. This is largely due to lost jobs in this volatile economy. Many factors are involved in addressing a situation like this and one solution alone cannot solve the crisis. We saw millions of dollars in stimulus money go to lending institutions only to be left wondering why the problem is not going away. The†¦show more content†¦A few other problems that have arisen as a result of the crisis include lost revenue for cities, increased crime and, of course, more properties that are vacant. Many places are also reporting a large increase in homelessness. One group alone is not going to solve the crisis, nor is one solution by itself. There has to be a combined effort of three major groups and a set of several solutions deployed at once to gain ground and overtake the crisis. We will discuss this in the next section. The Solution Currently, we are seeing some waffling going on concerning this issue in Washington D.C. along with some lending institutions that will not work with homeowners. This is where the start of the solution lies. The government, by means of a qualified representative, a large banking conglomerate overseeing lending institutions and a small group of geographically diverse homeowners in foreclosure will need to come together to form a coalition. This coalition’s sole purpose will be to work together, with a common goal, to solve this crisis. This group, along with government imposed rules upon lenders based on solutions, will have the authority to set in motion a plan that will move toward solving the crisis. 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