Using Financial Education to Improve the Foreclosure Situation in America

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Foreclosures have been rising in our country since long before the economic downturn we now face. According to Enterprise Community Partners Inc., a non-profit devoted towards creating opportunities for low-income families to achieve homeownership, “The rate of personal bankruptcy in the United States rose by 69 percent from 1990 to 2000. ” Foreclosures are not something that Americans can properly navigate without knowledge. Studies show that it is without this knowledge that many individuals find themselves in dire economic conditions. In order for our country to develop a more successful approach towards finances and overcome the foreclosure crisis we are now in, I firmly assert that our people need a more functional financial …show more content…
We espouse the Latin “Ignorantia juris non excusat,” or “ignorance of the law excuses no one.” Our nation cannot honestly uphold this principle without making firm attempts to educate our people. As these young individuals grow up, they will enter into contracts and mortgages that they haven’t been taught to understand, and history may repeat itself as another foreclosure crisis emerges.
According to a poll done by Freddie Mac/Roper of 2,031 U.S. homeowners in 2005, 6 out of ten individuals wished they understood the terms and details of their mortgage better . Another poll by Freddie Mac/Roper further demonstrated that over 6 in ten homeowners who were delinquent in their mortgage payments were not aware of the services that mortgage lenders could provide to them . There are serious repercussions to someone failing to meet the terms of their mortgage. It is disturbing that a survey of the American people could reveal such an informational deficiency on the matter of mortgages. When we are sick, doctors ensure that we are provided with proper care by assessing our physical state, the medications we are on, and all other factors. People need to assess their financial health and decisions in like kind as informed citizens before they enter into mortgage contracts, and our government needs to help them in this pursuit.
Studies have evinced that financial education is beneficial to our nation. The paper

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