Chapter 13 loan modification
It is possible that congress could pass legislation allowing homeowners to modify the terms of their mortgage on their primary residence. The legislation still has a long ways to go before it is enacted into law, but it would provide debtors a chance to stay in their home. It seems that fewer and fewer debtors are choosing to reaffirm their homes recently and instead are surrendering the property. This is due in large part to the fact that the homes are worth less than the loans and the prevalence of home equity loans that remove all of a homeowners equity from a property. In many cases debtors make the decision to walk away from an upside down property instead on continuing to make payments and keep the property. It seems that this will continue to happen until the prices of homes stabilize. It seems likely that homes will continue to appreciate once again it just will take some time.
Write a comment
- Required fields are marked with *.