Record unemployment, falling home values ​​and a recessionary climate have plunged the real estate industry into a downward spiral. It all started with lenient mortgage guidelines that allowed millions of people to realize the American dream of owning their own home. Eventually, they ended up living beyond their means. Adjustable rate mortgages came due and, realizing they could not afford higher mortgage payments, homeowners began putting their homes up for sale. There weren't enough buyers to meet the supply and mortgages began to default. Families across the United States were faced with the reality that they could no longer afford to keep their homes, and foreclosures began flooding the market, pushing the country into a deep recession. The government has attempted to help reduce the supply of housing on the market by introducing the tax incentive scheme for first home buyers. This program was successful in attracting new buyers to the market, but was not enough to reduce the oversupply of housing. My plan is a proposal to help homeowners continue to be homeowners, help banks create more mortgages that homeowners can afford, and reduce the glut of homes on the market. To illustrate my project, I would like to introduce you to two families, the Holmes and the Banks. The Holmes family purchased their home in 2005. Interest rates were low and demand was high. They made their payments and everything was fine. Then, when the recession hit, Mr. Holmes lost his job. He found another job, but only made half the salary of his old job. The value of their home was suddenly less than the amount they owed the mortgage company, and they could no longer pay their mortgage. Their loan was definitely put in place... middle of paper ...... to help turn things around. Once the plan is fully developed and implemented, much of the foreclosure crisis will be resolved, allowing the economy to get going. gain consumer trust and continue to recover faster. Eventually, homeowners will adapt to their new lifestyle and begin contributing to the economy. I hope they learn from this experience and want to help others in some way. My plan will accelerate the process of getting the millions of homeowners in various stages of delinquency to be proactive and work with qualified professionals to find a solution. The real estate industry would instantly recover, the tsunami of foreclosures that would occur in the future would be dealt with quickly, and the inventory of empty homes would be purchased. Recovery in the housing sector would begin, thereby boosting the economy.