Personal Finances Essay

932 WordsMar 27, 20114 Pages
“Lapse in Personal Finances” Ralph Harrison Composition II Baker College Ms. Lisa Nash February 28, 2011 “Lapse in Personal Finances” When the economy is in a recession and many are finding it hard to cover their monthly expenses, there is question to who should be blamed for these circumstances. Though initial cut backs in jobs lead us to point fingers at the government and corporate America, we often find ourselves putting blame on others for our financial situation. When money tightens down, what is our response? Do we too tighten down our spending, or do we carry on as usual? In the last couple of years foreclosures have been on the rise. In addition to this, the negative press on large financial institutions has also been on the rise. In this time of economic stress, whose responsibility is it to take care of our personal finances? In the past year banks have received scrutiny over their foreclosure processes and have been accused of foreclosing on individuals that should not have not been. In a closer research however, we find that the average foreclosure eviction is over 435 days behind on their mortgage. To put this in perspective, I give myself the situation of owning rentals. Would I let a renter be over a year behind in rent before evicting them? The answer is no. I would probably look toward eviction once they are approximately two months behind. A bank is still a for profit business, and if they are not making money due to non payment, it should be expected that there will be consequenses. With foreclosures in full swing, it’s reasonable to question the different reasons that are behind this trend. It is true that many find themselves in an unfamiliar situation with no job and no means to pay their mortgage, but there are many other situations that I have experienced first hand. Our hearts go out to these individuals who have found

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