Solving the Foreclosure Crisis Not the End of the...

Our nation today has become spoiled with instant gratification. Loans and the borrowing system have given the idea that patience is no longer a virtue and that saving is no longer necessary. Material wealth is increased, but so is the idea of false wealth. People have become so bloated with it; therefore they take on more than they can afford. That is what has happened with our nation’s recent wave of foreclosures. Loans have led everyone to believe that they can own a home and it has omitted the practice of saving. That is where the beginning of the solution lies. Our nation’s people need to relearn the value of patience, therefore we need to learn how to start saving again because although loans may pave a way toward†¦show more content†¦Before this recent foreclosure crisis, these four states were the fastest growing in the U.S. No one creates this mess, and things like this do not just happen. To try to solve this, we have to look deep down at the root of the problem. There are many reasons for foreclosure, including job loss, payment increase or mortgage adjustment, reduced income, along with many other reasons. What do these reasons have in common? They are all due to the bad economy and the homeowners cannot help these circumstances. Nobody would voluntarily choose to stop paying their mortgage, it would be unforeseen circumstances that arise that leaves one without enough to meet their payments. The borrower is left with no choice and clear solution. The borrower is just the outer surface of a deep problem. The problem lies within the system of lending itself. The system of credit that the U.S. relies on allows purchasing based on credit, or the ability to pay bills. Gauged with a credit score, one can increase this by paying more bills. Essentially, to gain a high credit score, one must incur more debt. This is where everything goes wrong. Though material wealth is increased, so is the debt. Unfortunately, peo ple become so inflated with this false wealth that they take on more debt than they can afford. With their high amount of debt, or credit, other purchases including homes become easier. This adds a considerable amount to one’s already high debt.Show MoreRelatedPromoting Responsibility in Lending: An End to Foreclosed Homes1009 Words   |  5 PagesThe problems of the American economy are growing every day. An economy in ruins causes ripple effects within the country; whether it is an increase in crime, borrowing money, or the loss of jobs. One of the most devastating effects of the economic problems we are facing is the one directly related to their cause: the foreclosure crisis. More than 2.7 million homes have been foreclosed since 2007, and the number continues to climb. 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