In 30 percent of private loan modifications last year, large banks like Bank of America, have agreed to a principal write-down, cutting the amount homeowners owe on their home as far down to the current market value. This is in an effort to allow borrowers to actually afford payments on their home. With housing prices plunging back down to earth after the housing bubble burst and incomes remaining flat, banks are hoping to now match affordable homes with people who can actually afford them.
Bank of America has been the first big bank to launch a pilot project with Boston Community Capital, a nonprofit that is buying homes at market value and reselling them to current homeowners at a slight markup, so the homeowners can actually afford the payments. Some experts have described this as ‘overdue housekeeping’ for America’s economy. Banks clear their balance sheets, investors get a predictable stream of income, and homeowners get to stay in their homes.
To read more on this story visit:
http://www.npr.org/2012/01/02/143601604/in-mortgage-crisis-some-banks-agree-to-cut-losses
Choosing the right attorney can make the difference between whether or not you can keep your home. A well qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
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