Solving The Foreclosure Crisis Essay

998 words - 4 pages

When it comes to foreclosures, no homeowner wants their home taken away from them because of not paying their mortgage. Why worry about if that paycheck will be enough for the house payment this month? It comes down to one thing, finding a solution into not falling behind and covering that payment when the economy is not working for the working individual.
There should be a solution for every hardworking homeowner who purchased his or her house or is still living in that home today. Homeowners, like stockholders always take a risk investing their time and hard money in something they may need in the near future, which is an investment.
Times have definitely changed in the economy, ...view middle of the document...

Now, here comes the fallback in which the economy has changed and a high percentage of employees are receiving their layoff notices from their employer. Those homeowners now do not have the income to pay their house mortgage or home equity payment to the bank. When that occurs, what is the next move for a homeowner to do make up the house payments? In some cases, refinance or the bank will foreclose on the property regardless of assisting the homeowner who is in a crisis. What can the government, the bank, a refinance company, or law firm do for this homeowner so he or she will not lose their home? Should the legislation give a homeowner a break since the economy now, is not working for them, be optimistic, and give them an alternative to own their home.
Banks have been a mediator when it comes to a homeowner and their mortgage. Mortgage payments and refinancing is a way that banks receive their investment capital to buy stocks, raise bonuses and salaries, and give other accountholders to invest their money in them.
When it comes to investments, homeowners have deposited their money into banks, paid their individual and property taxes, purchased company stocks and their healthcare insurance through their employer. Companies are now letting their employees start a FSA (flexible spending account) for health emergencies. This account is for the accountholder to use for any kind of emergency bill when it comes to paying off a hospital bill.
A solution for the foreclosure crisis would be why not the homeowners have a HSA (homeowner spending account), in which this spending account used specifically for mortgage and loan payments towards the house. The understanding of the homeowner spending account is that when an employee has a home that it is optional for their corporate stock investment to go to the spending account. The amount that the company takes out of an employee’s...

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