Wednesday, September 29, 2010

The Aftermath of Foreclosure

In life, we should accept the fact that if there are struggles that is coming along the way, there's a corresponding cost to that. It cannot be something we should be feared of if we know it will not affect our life and the lives of the people around us. If circumstances happened in our life, expect that it will affect an area of our life and our love ones.

For foreclosure, it could be an unfortunate event for every homeowners. This is something we should avoid and we should prevent from happening because it may either directly or indirectly affect not only your life and your family but also that of the society.

Both the lender and the borrower should carry their own burden. At times like this, everybody must need to be educated and have full awareness about this. You might be sleeping sound at the comfort of your home without knowing that you will lose it the following day. All people that is involve in the process of foreclosure must be aware and should be given an opportunity to know the situation.

If you let foreclosure to happen, it will create chaos in the society. That is why the government is involve on this. The government must also share an effort to help both the lenders and the borrowers to work out on foreclosure threat and prevent it as much as possible.

If there is foreclosure, the following may happen in the society:

1. Crime rate will increase

If everybody seems to be losing home, they may come into a desperate move in order to get the attention of the people involve in the foreclosure process. This will make the neighborhoods not organized, thus there is a greater possibility of crime.

2. General Crisis

Foreclosure may be happening to a single family, but if you are going to sum it up in one location, you may find it as a general problem. Everybody is suffering regardless of the status you have in life. Whether you are rich or poor, young or old, everybody can become a victim and this can be a crisis in general.

3. Emotional Damage

We may be able to quantify the damage by looking at the monetary side. But the emotional damage that this crisis has brought in to every family is something irreversible. This cannot be undone and will cause trauma to the affected families.

We may not be able to see the bigger picture now. But if we just let this happen,we cannot be able to bring back the society that we are aspiring for. That is why the government, the lender and the borrower must work hand in hand to put barricade against foreclosure, because once this will penetrate a single family, it may directly or indirectly affect the whole society in general. This is the real cost of the foreclosure. It is not only damaging you financially, but most of all, it will damage the society and your family's whole being.

Wednesday, September 22, 2010

The Government's Perspective on Foreclosure Crisis

The foreclosure crisis is said to be the result of the government's performance. Nobody wants to experience this and everybody might be striving and doing their best in order to save their own homes. But if the economy is really low and people cannot be able to get the income needed in order to pay monthly amortization, no matter what the residence will do, foreclosure may come to them.

The government plays a vital role when it comes to the economic condition of the area. It is their sole responsibility to make sure that income is properly distributed to all the people. The government must also see to it that they will establish a strong economic condition that it can handle the population of their area. If the government could not be able to handle this aspect, this may bring chaos to the economy and the impact will then be visible to the community. That is why the solution for foreclosure crisis must always come and start from the government.

The real story behind the foreclosure crisis can be viewed entirely through the banks. The banks can actually make trillions of dollars on bad mortgage loans. This now can be used to buy houses at bubble-inflated prices. If the housing bubble will collapse, it will put most of the mortgages under water. That is the main reason why the community could not afford to pay their mortgages anymore. If the government will allow the market to run its course, this could be a big loss for bans and investors.

This is now the scene where the government should come to the rescue. If the government could be able to uplift the income, this will help the banks by making people able to pay their underwater mortgages.

The government has been organizing several programs to ensure that they are doing their part to cease the battle against foreclosure crisis. Programs like Home Affordability Modification Program (HAMP) can help people to review their mortgages and appeal for loan modification.

So far, with all the resolutions and suggestions appealed by the government, nothing has really been effective in pointing out the underlying housing problem and fix it permanently. Although the effort is there to alleviate the conditions, foreclosure can't just be easily get rid of the system. There are a lot of proposals and programs, these may have minimize the problem but not completely been eliminated.
The reason why people are still suffering despite the fact that the government has been giving all the efforts and shelled out amount of money is because they forgot the fundamentals. If the government can really start working out on the cause of this issue, foreclosure can be nowhere to be found. The truth is, if government can establish a strong economic condition, it will give opportunities and jobs to people. If people have a credible an d strong resources, they can be able to pay their mortgages, and that's the end of foreclosure.

If the government and the people can work out on the root instead of providing solutions that may not completely fix the problem, I believe we all can defeat the foreclosure crisis.