Solving the Foreclosure Crisis Essay

1049 Words 5 Pages
In the last year the foreclosure has sky-rocketed to heights beyond imaginable and without the help of government officials and banks the situation may never be under control. The method in which one should approach the crisis is by the use of subsidizing the foreclosed properties and turning them into a rental issued and government owned property.

First, in the most primary stage of action the U.S. Department of Housing and Urban Development (HUD) should take over all of the foreclosed properties from the first of January 2008 until the first of January 2010. The department may then look into redistributing the foreclosed properties back into specified geographic locations, such as counties. Then the banks within each county would be
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In this situation the bank may take one of two options. The bank may hold onto the property and continue to lease it or the second option in which the occupant may choose to take the action to buy. This will only happen when the occupant shows that they have been financially stable for at least eighteen months since acquiring the property. Then the bank may choose to sell the property for the same or slightly greater rent price. The economic stability of the individual or individuals purchasing the house will be proved through tax filing and job inventories made by each bank. If the occupants fail to pay rent price for three months the renters will be evicted and forced to pay the fees due at time of eviction. The good thing about the use of this eviction instead of a foreclosure is then the bank may fix up the house as it had in the beginning and start the cycle again. This would also make it easier for the renters to move on to the next property without the “shameful” scar of a foreclosure on their record, thus boosting the amount of families living in now vacant homes and reducing the amount of foreclosures present.

The price of the rentals is also a forced to be bargained with because of the currently high unemployment rate. During 2008 the rate of people working full time was sixty-five point six percent of the eligible to work (http://www.bls.gov/cps/). This is in part due to the number of

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