Dishonesty in the Appraisal Business: The Cause of the Foreclosure Crisis

993 Words 4 Pages
America is suffering greatly in the economic sector right now, and more specifically, in our housing industry. Fortunately, every problem has a solution, some are just harder to find than others. Americas housing problem, just like any other problem, has a solution. This solution requires three things to happen, we need more honesty in the appraisal business, we need more stringent regulations on who can get credit, and how much credit they can get, and last but far from least, are the values we teach our children about spending and saving money, and the true value of money and honesty. This housing crisis occurred due to a large amount of dishonesty in the appraisal business. My father experienced this firsthand, as he trained to be …show more content…
This would allow people to know whether or not they could afford that particular home, and the mortgage that they would be responsible for also. It would also prevent people from borrowing more than the house is actually worth. If the borrowers start having problems making their payments, if they owe less than the house is worth, they should be able to sell it and avoid foreclosure. Over the last couple of years, people have borrowed so much more than the houses were actually worth, that they could never sell them when they could not make the monthly payments. This would also stop rampant inflation of home prices, and houses that are valued at more than they are worth, and instead keep things at a steady rate, which has proven to be the best type of growth throughout history. Another cause of our housing crisis occurred because people were getting credit limits that were far too high for their income level, or were allowed to take a variable rate loan which allowed for a ridiculous amount of irresponsible spending, leaving people without enough money to pay their credit card bills, as well as their home payment, which caused a vast amount of foreclosures in the U.S. If more laws and regulations are placed on credit card companies and those who are trying to get credit that is above their means, then we can not only take a major step towards fixing our current problems, we can also avoid this ever happening again in the

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