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America’s Foreclosure Crises, Which Way Is The Way Out?


America is going through hard times. The price of gasoline has skyrocketed out of control. Many people must plan their day around how much gas is in the tank rather than what they need to get done that day. The cost of groceries has risen significantly as well. The price of a gallon of milk has just about doubled in the last year as if there is a shortage on cows! With all of the struggles the American people are facing, they should not have to worry about losing their homes. Unfortunately for many Americans though, this is the case. Once vibrant, growing communities are now littered with foreclosure signs and empty homes. Have the pressures of life proved too much for these once happy homeowners? Is frivolous spending the reason they could not pay their mortgages? Actually it was frivolous lending and terrible loans that have turned many Americans dreams into nightmares. Many Americans were lured into believing that the housing market would continue to be the best way to invest their money. Seminars all over the country preached of a get rich quick system in real estate. Popular television shows such as, flip that house, show investors purchasing and remodeling older homes for a huge return when sold. Lenders aggressively targeted first time home buyers with advertising campaigns claiming that ‘now’ was the time to buy your home, or ‘get in before it is to late’ indicating that prices would only skyrocket further. Many lenders began coming up with creative ways to get borrowers approved. One trend lenders abused over the last decade was having borrowers go ‘stated’ on their income. Going stated means that the borrower makes a statement as to how muck money they make annually. In a traditional loan instances the borrower must provide pay stubs from their place of employment. Lenders would actually coach borrowers to open a banking account and deposit between three to ten thousand...