Those homeowners who made conservative financial decisions, saved for a significant down payment and are making their mortgage payments on time even if it involves financial sacrifice may wonder if the government is being fair.
Higher income groups apparently made a rational and rapid decision that default was the best option. Why continue making a large mortgage payment on a house that is worth considerably less than the mortgage balance? Does anyone really think that a house purchased for $1 million 5 years ago and now valued at under $400,000 will increase in value by 150% any time soon?
Massive, expensive and time consuming government programs to “modify” mortgages have basically been a disaster which have extended the housing crisis to the same degree as foreclosure moratoriums. Since 2008 a total of 2,258,026 mortgages have been modified, resulting in payment reductions of up to 35% or $567 per month.
A recent study predicts that the foreclosure crisis in not even in the fifth inning yet.
Read the rest of the article at Problem Bank List
No comments:
Post a Comment