Essay on Foreclosures- An Undesireable Mess - 1707 Words

Foreclosures an Undesireable Mess Due to the recession that is currently taking place in the global arena today, the United States has concurrently become affected by a foreclosure crisis. In order to fix the economy and prevent future recessions, the United States must develop a plan to regulate foreclosures. To decrease the amount of foreclosures the United States has by providing financial support to homeowners. The Obama administration must persuade banks to provide assistance to families that are unable to fully meet their mortgage expectations. This may sound simple enough but foreclosure rates have gone up significantly in 2009. The government must also provide assistance to homeowners. Families have to leave their homes†¦show more content†¦Ã¢â‚¬Å"The Obama administrations original plan was to persuade the lending industry to hand out $50 billion in subsidies.†(Fleisher) But so far the amount of homes being foreclosed has continued to rise. â€Å"Foreclosure filings rose more than 33 percent in June compared with the same month last year and were up to nearly 5 percent from May, RealtyTrac said.†(Fleisher) The amount of foreclosures in a given area also affects the value of homes surrounding the foreclosed homes. Areas where foreclosures have increased have shown that real estate value decreases. For example, Greeley, Colorado, the city and state that I live in has experienced this phenomenon. It’s happened to my parents personally. Foreclosures around our house have increased and now our house is valued less than what the mortgage is worth. It’s discouraging to think about and it puts homeowners in an interesting situation because they have to pay more for a house that isn’t worth as much. This isn’t how it should be. The government should regulate banks in order to adapt to situations like these. The government should persuade banks to adapt mortgages to the changing real estate home values. Even if it’s just until homeowners can get back on track. The foreclosure issue can also be tied to the fact that unemployment has risen significantly in the past months. â€Å"While the current unemployment rate—9.5% in June—is not at an historical high, it