Is Debt Reduction The Answer To Foreclosure Mess?

Jim Randel, founder of The Skinny On, wrote an article June 6, 2009 for The Huffington Post suggesting debt reduction is needed to finally solve the nation's foreclosure crisis.

Randel wrote that other measures taken by the Obama Administration have not worked.

"The missing piece is debt relief ... not a reduction in interest rates, not an extension of the loan amortization period, not a temporary abatement in mortgage payments. We need to confront the problem head on and stop nibbling at the edges - we need to discuss principal reduction."

Randel goes on to write that too many homeowners are "under water" on their mortgage, i.e., they owe more than their home is worth.

Randel writes, "Why work your butt off to keep paying on a mortgage, even if your payments are reduced to where you can afford them, when all you are doing is treading water?" How about because it is the right thing to do?

"Today, about 1 in 4 houses with a mortgage are underwater and many more are close. Since about 2/3 of all homeowners have a mortgage, this means that almost 20% of our housing stock has more debt on it than value. That's 13 or 14 million homes. These residents are now quasi-tenants, paying 'rent' to a lender so they can stay in their home with little chance of upside. Obviously that was not the thinking going in when these homes were purchased. Many of these homeowners put in equity and hard work with the hope of cashing in someday. That dream is now gone."

For those responsible homeowners and taxpayers bailing out the nation's banks and every other deadbeat the American Dream is slipping away.

Read The Huffington Post Article

Comments

[Lidiya]

Hi,

We have just added your latest post "Massachusetts Foreclosed Homes: Is Debt Reduction The Answer To Foreclosure Mess?" to our Directory of Foreclosure . You can check the inclusion of the post here . We are delighted to invite you to submit all your future posts to the directory and get a huge base of visitors to your website.

Warm Regards

Foreclosu-re.info Team

http://www.foreclosu-re.info

[Rich]

Thank you Lidiya!