Short Sale

Not sure if this will work ($1500 probably isn’t enough to help someone move), but at least it’s an effort toward some creative problem-solving. Of course, the simplest solution of all would be to stop propping up inflated property values:

In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.

This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions.

More than five million households are behind on their mortgages and risk foreclosure. The government’s $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done.

For the administration, there is also the concern that millions of foreclosures could delay or even reverse the economy’s tentative recovery — the last thing it wants in an election year.

5 thoughts on “Short Sale

  1. yeah my first thought was $1500 to move? maybe in some places, but here it costs half that just to move a small apartment a couple miles.

  2. I agree with Jay – these are CONTRACTS and a court should be able to modify the terms so that the homeowner can keep his/her home at a reasonable, fixed mortgage rate. It’s that simple.

  3. The sacred nature of a contract, in this case a mortgage, is way beyond me. The lenders wanted to make a killing when the properties went through the roof; they would loan any sum of money to anyone breathing. The owners were happy to get the loans.

    Now properties cost collapsed, but the lenders scream “contract” and the owners are left holding the bag.

    No moral teaching will uphold this crap.

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