Solving the Foreclosure Crisis Essay

1020 Words 5 Pages
The current foreclosure crisis in America is a very sad and disturbing situation. It is distressing to think of families across the United States of America in the process of losing their homes. As the leader of the free world, it is appalling to me that the president and his cabinet cannot develop a program that will assist families to stay in their houses or at least prevent them from being eradicated from their home sweet home. This is the reason why I have talked to my parents about an idea to prevent this from happening. My idea for the current foreclosure crisis is a simple one, but one that I think might have positive results. The main goal is to keep families from losing their homes. My plan would be a delaying …show more content…
This delayed home payment plan would be a one time only usage for homeowners. You do not want to create a program that could be repeatedly utilized by families. This would be disastrous for the banking system. It would also have negative motivational implications for families to solve their own financial crisis. Another key component of “Keep America Covered” is that the twelve months of frozen payments doesn’t have to be used all at once. For example, a person loses their job or some other situation arises. They need enrollment into the program so they apply for the “Keep America Covered” program. The assistance plan has a total of twelve deferred monthly payments. These payments can be used all at once or in multiple segments. Let’s say after six months of deferred payments, this individual finds another job and is back on track. The bank, in turn, can be notified and the deferment of payment program can be cancelled. With “Keep America Covered” in this particular example, the person only used six of the twelve delayed payments. That applicant can still qualify for “Keep America Covered” on the remaining balance of the plan. This would provide the family protection in subsequent events of job losses or other future situations that threatens a family’s ability to pay the home mortgage.
What is in it for the bank? According to foreclosure on average, banks lose about $60,000 on a foreclosure in terms

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