Goverment Suggest Reducing Jacksonville's Mortgages In Order To Solve Mortgage Mess

Real Estate News, Foreclosures

Reduction in the Principal of Mortgage May Help Troubled Jacksonville Homeowners

Ben Bernake, Chariman of the United States Federal Reserve, recently suggested having "straight principal reduction of troubled loans" in order to help problem borrowers. So if you have a mortgage of $200,000 he is suggesting changing the principal amount to less. I would like my mortgage reduced $100,000, please.

It does make sense if you consider that homes are worth less (only a 2% drop in home value in Jacksonville) so that banks couldn't sell the homes for the mortgage amounts anyway if they foreclosed on the homes. The banks would just have more carrying cost holding onto the foreclosed homes and the increase in foreclosed homes for sale in Jacksonville might drive down the market more. However, if the homeowner had a lower mortgage amount he could continue to live in the house and make payments.

So my question is ... where do I sign up?

Click here to subscribe in your reader or Click here to receive these real estate articles and news by email

foreclosure (14)

Date: Wednesday, March, 5th 2008 @ 03:38:00 PM
Views: 737

Like this article?

Click here to subscribe to the RSS feed in your Reader.

Click here to receive new articles via Email.

Be the First to Comment on this Post!.

Back