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.