Mar 05
Amidst the news that approximately 25% of homeowners with mortgages are now underwater (meaning they owe more than their mortgage balance), will we start seeing more cries for lenders to offer principal reductions to (a) make these existing mortgages more affordable; and (b) provide an incentive to keep borrowers in their homes? Given the high recidivism rate among borrowers with loan modifications — which is often like putting a Band-Aid on an amputated limb and then praying it holds — perhaps’ its time to look at other options.
