Should lenders reduce principal balances on upside down homes?
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Should lenders reduce principal balances on upside down homes?
The real estate market plummeted about 4 years ago with foreclosures continuing to increase while property values have continued to go down. It is now estimated that 25 percent of all US homes owe more than they are worth. The government and industry sponsored foreclosure prevention programs have all failed. Some are pushing for lenders to write down the amount owed so that homes are not upside down and so the default rate would decline. If successful, foreclosures would decline and values would stabilize and/or would start to increase.
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Immoral Hazard: How Helping Homeowners Avoid Foreclosure is Good for Everyone - BNET (blog)

Immoral Hazard: How Helping Homeowners Avoid Foreclosure is Good for Everyone - BNET (blog) | Should lenders reduce principal balances on upside down homes? | Scoop.it
Immoral Hazard: How Helping Homeowners Avoid Foreclosure is Good for EveryoneBNET (blog)Thing is, any homeowner concerned about ...
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A foreclosure settlement plan might make matters worse - Washington Post

A foreclosure settlement plan might make matters worse - Washington Post | Should lenders reduce principal balances on upside down homes? | Scoop.it
A foreclosure settlement plan might make matters worseWashington PostThe prospect of qualifying for a principal reduction might ...
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The Seductive but Flawed Logic of Principal Reduction ...

The Seductive but Flawed Logic of Principal Reduction ... | Should lenders reduce principal balances on upside down homes? | Scoop.it
First, we could find no evidence that any lender was actually reducing principal. Commentators blamed the lack of reductions on ...
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