To fix a problem like foreclosure we have to look at its causes which involve in our case as U.S. citizens a lot of bad judgment. This lack of properly analyzing business deals is a fault laid on both the consumers (or homeowners rather), and the financing companies such as banks and lenders. On the side of the banks and lenders we have things like loans over the value of the home, ridiculous variable interest rates that make it nearly impossible to pay the mortgage back and approving loans for homeowners with low and unstable income. On the side of the homeowners the list is nearly endless so to name a few key issues we have to stop counting eggs before they hatch, live within our means, not be so greedy and read the fine print. In
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The problem we have undeniably is the need to take these loans out to begin with. Those needs vary as well from simple things like fixing a wrecked car or renovating part of your home, into more complicated issues like sending a child to college, taking care of a loved one’s funeral arrangements, or even bailing a bad apple out of jail. One more need for a mortgage loan that comes to mind is one that deserves an intense degree of attention and that is the desire of a homeowner to start their own business. When applying for a mortgage loan the actual need for the loan should thoroughly be accessed as to prevent an unnecessary burden on an anxious homeowner.
The approval of a mortgage loan or any loan for that matter should not be based solely on credit, but rather should rely on every aspect of how the loan will be used and how the recipient will be clearing the debt. If a homeowner for instance desires to take out a loan on their house then according to their income every other venue of assistance should be explored to help with the need for taking out the loan. When a child needs to go to college before the family home is put on a hotplate they should fill out a FAFSA and apply for every possible scholarship. Also with funeral arrangements this writer personally knows how heart wrenching this can