Solving the Foreclosure Crisis Essay

942 Words 4 Pages
The focus of this paper is to provide a plan for the increase of foreclosed properties. A realtor is one of the most profitable markets to be employed in. Everyone at some point in their live would like to be a homeowner. Many realtors tried to make homeowner dreams a reality. Other realtors are looking at the profits. The more houses a realtor sells the better their commission is. The realtors never thought that foreclosure would become a problem if they sold houses to people that really couldn’t afford them, with loan amounts that were twice the revenue brought into the household. Some of the homeowners may have lost their job due to the declining economy. Some of these families have owned their homes for ten years are more. These …show more content…
Once the government purchases the foreclosed properties, the families that are on the Section 8 Program can live in the properties and pay the government. Section 8 will not have to pay monthly rent to public home owners because they are the owner of the property. The program has made an investment up front and will get the pay back from the family. The program will not be credit based but need base. For example, the average rental price is $800 a month which is $9,600 a year. If a Section 8 family stays in the home for 5 years the cost would be $48,000. In this case, the property pays for itself. The average family stays on the program for about 5 to 10 years. In this time frame the government has made the money back. This would decrease some of the spending that the government does and there will be major investments in the program. This will not only cut back on government spending but reduce the fraud and the other negative connotations that these types of programs may seem to have. Here is how it would work.
A family of three has a housing voucher for 3 bedroom house. Instead of the person finding a property to rent for $800 the government can move that family in the house that they purchased, for little to nothing, and the family will have income based rent. The Section 8 program will not have to mail a check to themselves. Instead the recipient would be paying the program

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