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American Homeowners are not doing the best they can to avoid foreclosure

Introduction

For most Americans, owning a home is a essential part of the American dream. However, due to economic difficulties, countless families are experiencing financial difficulties and are facing difficult choices they struggle to pay their mortgages. If you have trouble paying your mortgage and are facing foreclosure, you may take advantage of available funding options offered by local government agencies, state and federal. The rights and rules of Americans are destroying families and neighborhoods. For those homeowners suffering sleepless nights in fear of foreclosure or are watching and waiting for a marshal to show up to serve papers, there is some help from the state.

Discussion

American homeowners are not doing the best to avoid foreclosure, in most cases homeowners wait too long and they will have so much debt, payments, late fees etc on their home then they cannot sell their houses to the investors in order to save them from foreclosure because the initial payment will be very high and the investors and other people won't agree to buy their home and help them (Allen, 845-866). In this case, a short sale could be an option in which an investor can negotiate with the bank to buy their house at lower price. But it is very long process and sometimes it's impossible for them to negotiate with the bank and the homeowner will lost his all credit (Rogers, 455-479).

There is another best way to avoid foreclosure is that house owner can refinance the loan to other party so that loan payment would reduce and monthly payment and interest can be reduce. Although no one wants to lose their house but this is the only way to save your money from foreclosure. American homeowners don't do this and they lost their money and home.

American homeowners are struggling. At the start of this year, nearly one in four mortgages was underwater and 4.5 million mortgages were seriously delinquent. And today, some studies estimate that as many as 10 million borrowers are at risk of defaulting on their mortgages in the coming years. One of the problems that have made things even harder for struggling homeowners is the state of the mortgage servicing industry, which collects payments on behalf of the owners of the loans. This industry has never had a requirement, or a strong incentive, to meet the needs of consumers. Even before the crisis, there were already problems with bad practices and sloppy recordkeeping (Allen, 845-866).

Consider for a moment the impact of these problems on families. We are not talking here about a $10 overcharge on a utility bill. We are talking about the largest single investment that people will make in their lifetimes, and a matter that goes far beyond a mere economic investment. We are talking, specifically, about people's homes. A place consecrated by a deep bond that only the passage of time and the precious enjoyment of time ...