http://www.biggerpockets.com/renewsblog/2009/09/09/world-order-good-real-estate-industry/ Learn, Network, Invest Sun, 12 Feb 2012 02:43:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.biggerpockets.com/renewsblog/2009/09/09/world-order-good-real-estate-industry/#comment-76963 john Wed, 06 Jan 2010 23:47:57 +0000 http://www.biggerpockets.com/renewsblog/?p=6917#comment-76963 good analysis for problem and solutions good analysis for problem and solutions

]]> http://www.biggerpockets.com/renewsblog/2009/09/09/world-order-good-real-estate-industry/#comment-73298 Jack Lewitz Thu, 01 Oct 2009 17:07:40 +0000 http://www.biggerpockets.com/renewsblog/?p=6917#comment-73298 The success of any Home modifications will require lower monthly mortgage payments. Many people who want to stay in their home cannot afford the payments they have and are looking for lower mortgage payments. Unfortunately, loans being modified are not reducing these payments and therefore more people are defaulting on these modified loans. Also, there are people being offered modification programs who clearly do not qualify for this plan like those people who are unemployed. Its hard to modify a loan when you have no ability to pay? The success of any home modification plan will require the principal balance on the loan to be reduced to the "current market value"of the home. This is the only way to make the payment more affordable. Interest rate reduction and extending loan term are not enough. Finally, if the Fed really wants to help homeowners then it should guarantee the loss in the principal reductions. For example if a homeowner has a home loan worth $100,000 but the properties current market value is only $50,000 then the loan should be based on $50,000 and the Fed could guarantee the difference $50,000 loss to the bank. .-= Jack Lewitz´s last blog ..<a href="http://ilrealestatespecialists.com/2009/10/01/pending-home-sales-are-the-highest-level-since-march-2007/" rel="nofollow">Pending Home Sales are The Highest Level Since March 2007</a> =-. The success of any Home modifications will require lower monthly mortgage payments. Many people who want to stay in their home cannot afford the payments they have and are looking for lower mortgage payments. Unfortunately, loans being modified are not reducing these payments and therefore more people are defaulting on these modified loans. Also, there are people being offered modification programs who clearly do not qualify for this plan like those people who are unemployed. Its hard to modify a loan when you have no ability to pay? The success of any home modification plan will require the principal balance on the loan to be reduced to the “current market value”of the home. This is the only way to make the payment more affordable. Interest rate reduction and extending loan term are not enough. Finally, if the Fed really wants to help homeowners then it should guarantee the loss in the principal reductions. For example if a homeowner has a home loan worth $100,000 but the properties current market value is only $50,000 then the loan should be based on $50,000 and the Fed could guarantee the difference $50,000 loss to the bank.
.-= Jack Lewitz´s last blog ..Pending Home Sales are The Highest Level Since March 2007 =-.

]]> http://www.biggerpockets.com/renewsblog/2009/09/09/world-order-good-real-estate-industry/#comment-69852 Joshua Dorkin Wed, 09 Sep 2009 17:47:27 +0000 http://www.biggerpockets.com/renewsblog/?p=6917#comment-69852 Great analysis, Charles! Great analysis, Charles!

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