Foreclosure Crisis Essay

My family lived through the foreclosure crisis and was seriously affected by the tragedy of banks closing, home values decreasing dramatically and innocent people losing their homes. My mother was aloan officer for nine years who helped many families purchase their dream home. While being a single mom, she was the only one providing for our family for many years. She went from earning a comfortable income to not making any money or earning hardly any income, barely enough to support a family of three.The lenders that were left made the guidelines so strict that it became harder and harder for borrowers to get a home loan.

Homeowners had their homes foreclosed for several different reasons. Some lost their home because they had bought their home when real estate sold at a prime price and with all the foreclosures in their neighborhood the value of their home went down drastically. This caused some homeowners to be upside down on their mortgage loan some more than 40%. Many of these homeowners walked away from their home and their loan. Other people lost their homes due to divorce, medical reasons,health reasons,

Rent to Own is an option where a renter can put a little money down, pay their rent on time to help rebuild their credit, while also rebuilding their credit. While they have control of the property, not full ownership with the option to purchase the property at the end of the contract period. The landlord willrent the home to the tenant for no more than a couple of years, and then the tenant is expected to be able to purchase the home. Most of the time the landlord gives them credit for the rent they paid at the time of purchase. This transaction is usually done through an attorney or Title Company to make sure that it is done properly and will protect both