A Simple Solution to the Glut of Foreclosed Homes

Here is my solution;

1.  The borrower would be in default for 2 months.

2.  The lender does an analysis to determine the amount the borrower can pay and the appraised value of the property. 

3.  The federal government would pay the delinquency and take an inferior loan position

4.  In return for the payment, the lender would restructure the mortgage to an amount that can reasonable be supported by the homeowner.  The unpaid amount would be tacked on to be paid at the end or upon sale.

5.  The federal government would get their money repaid first in the case of resale.

6.  The borrower would have to demonstrate the default was beyond their control.

Comments

[hamptons real estate]

Thank you for the information. It is useful and the Blog looks great.

[chris Pia]

Interesting article, I am not sure how I came across an real estate article, but interesting read.

[paul dribin]

Thank you