Tag Archive for foreclosure education

Are Foreclosure Rates A Result Of Poor Education?

©africa - freedigitalphotos

©africa – freedigitalphotos

There’s no doubt that many foreclosures are a result of mortgage brokers not educating their buyers on the type of mortgage product they were buying. Brokers seem to neglect explaining the downsides of adjustable rate mortgages or balloon mortgages, and the huge risks involved. Education involves more than just providing the required pamphlets and documents, it means the teacher should make sure the student understands the material. It’s the job of every mortgage broker to educate their buyer on the products they are selling; both the good and the bad points.

Every product has a good side and a bad side. For example, adjustable rate mortgages have a very low introductory interest rate. For a first time home buyer, a 4% interest rate sounds much more appealing than a 8% interest rate. Even though the rate can adjust much higher, buyers are sold on the idea, because the mortgage broker claims that he’ll personally refinance the loan before it adjusts to a higher interest rate. He doesn’t explain that the buyer may not be able to afford the home at that time, because of the higher interest rate. Credit scores and income may also need to be higher at that point, in order to get an affordable interest rate. The law only requires a few pamphlets and a signed statement at closing; no real education is required. It’s a fact that this lack of education is a direct cause of the foreclosure problem, but is our country’s education system, or lack thereof, playing a much larger role in the overall state of our economy?

According to the PISA (Program for International Student Assessment), in 2006, American students only scored higher than 5 out of 30 countries. This means that 83% of students taking the test scored higher than or at the same level as Americans. The PISA measures the students ability to use knowledge of math, science, and reading in real world scenarios.

Our education system is getting worse every day and this directly correlates to our nations economy. At one time, our nation was the pinnacle of our worlds education system. It was a great privilege to send your children to school in America. Today, there are many countries that can provide a better education, and even provide better jobs after graduation. This also make foreign educated employees a better choice for many companies. By opening businesses abroad and outsourcing our labor to other countries, our CEO’s have made it very clear that they will hire the most qualified (and cost effective) candidates, regardless of how it effects our economy. Business leaders and politicions are suffering from our nations lack of education and we are seeing the results today in our economy. These leaders of our nation are making financial decisions that effect us all, but as it turns out, a 15 year old student in Korea may be better qualified!

To add to the crisis, it’s estimated that the health and education of over 2 million children will be effected by families losing their homes to foreclosure. When a child is uprooted from their home and their school, their physical and mental health will suffer. Children forced from their home experience behavioral problems, such as increases in violence and will have a higher drop out rate than children from stable households.

It seems we may be stuck in a never ending loop. If our lack of education is causing foreclosure and foreclosure is causing a lack of education, what can we do to make it stop? As the government continues to cut interest rates and devise bail out plans, it’s imperative for them to remember the children. Children are the innocent victims of foreclosure and the future of our nation will depend on their wellbeing and education. Keep your children’s education in mind at election time; vote for candidates who care about stopping foreclosure and repairing our country’s education system!

Can God Save Your Home From Foreclosure?

©m_bartosch - freedigitalphotos

©m_bartosch – freedigitalphotos

Most people in the USA seem to believe in God, or some sort of higher power, but do our higher powers care if we lose your homes to foreclosure? Across the nation, homeowners are praying to God to stop foreclosure and help them through their financial hardship. Realtors and mortgage brokers are even meeting in prayer groups to pray for more home sales. Obviously, if praying and faith alone were enough to stop foreclosure, we would have much less of a foreclosure problem in our country, but does that mean your faith and religion can’t help you through foreclosure?

st joseph statueMany churches now offer foreclosure assistance to their patrons by way of special foreclosure classes and education. These classes involve professional financial planning, as well as education about mortgages and predatory lending. A few churches may even provide financial assistance or provide loans to members of their congregation. The general public is welcome to attend any workshop or class, even if they are not associated with the religion. Catholic Charities USA sponsors many workshops across the nation and has provided help to over 4000 foreclosure victims. Many religions have similar classes and charities available on a weekly or monthly basis.

Another religious based foreclosure prevention technique is to bury a small plastic statue in the backyard when you need to sell your home. Burying a statue of Saint Joseph somewhere in your yard or garden is reputed to enlist the saint’s assistance in finding a buyer. This can help prevent foreclosure when you can no longer afford to make payments. Many homeowners, after having their home listed for years, have reported success within a few days after burying the statue. Some say the statue should be buried upside down until the home sells and removed afterwards. Others believe that leaving the statue will help protect the property for the new owner. For a mere $3.95, you can sell your home and avoid foreclosure, or so the ad says. Well, just like praying, if you’re facing foreclosure, you might want to enlist the help of anyone willing to offer it!

Your church can offer a great support group, and for many, their faith can provide the motivation needed to make it through tough situations. But, as with any difficult situation, you will need to accept help from all possible sources of help. There are many government programs available to help and foreclosure professionals can easily help you keep your home and get a lower payment by negotiating with your existing lender. You may even be able to refinance into a brand new loan, if you act soon enough. The key to stopping foreclosure is acting quickly and taking the steps necessary to stop foreclosure.

Although there are no facts that say praying will help save your home, I am pretty sure it will never hurt. But praying alone isn’t enough. Always remember, God isn’t going to save your home through divine intervention, but he just might point you in the right direction so you can find the help for yourself.