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Federal Reserve: Foreclosure is NOT the Best Solution to the Housing Crisis
January 04, 2012
Ben Bernanke, the Federal Reserve Chairman, has finally said it.
In a 26-page white paper on the current housing crisis, the Federal Reserve agrees that more lenders should proactively pursue mortgage modification in lieu of costly, time consuming and self-destructive foreclosure actions.
As published in this recent article published in the Huffington Post, and this one published in the Wall Street Journal, the US Federal Reserve declared that foreclosure is not the ideal solution for financially distressed homeowners who are behind in their mortgages. Instead, Bernanke urges lenders to aggressively pursue mortgage modifications in order to reach a broader economic recovery in today’s market.
Let’s hope that more lender will start to listen.
Mortgage modifications are certainly better than lenders foreclosing on homes, taking possession of them, and after the homeowner vacates the premises…having empty abandoned homes further damage the housing market for the neighboring properties. The lenders are still left with properties that are not producing income, the neighboring properties continue to decline in value and the homeowners are now applying their reduced income towards a rental property.
Unfortunately, most banks don’t see it this way, or at least don’t have the incentive (yet) to change their approach.
Hopefully this will change.
…Soon….
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
In a 26-page white paper on the current housing crisis, the Federal Reserve agrees that more lenders should proactively pursue mortgage modification in lieu of costly, time consuming and self-destructive foreclosure actions.
As published in this recent article published in the Huffington Post, and this one published in the Wall Street Journal, the US Federal Reserve declared that foreclosure is not the ideal solution for financially distressed homeowners who are behind in their mortgages. Instead, Bernanke urges lenders to aggressively pursue mortgage modifications in order to reach a broader economic recovery in today’s market.
Let’s hope that more lender will start to listen.
Mortgage modifications are certainly better than lenders foreclosing on homes, taking possession of them, and after the homeowner vacates the premises…having empty abandoned homes further damage the housing market for the neighboring properties. The lenders are still left with properties that are not producing income, the neighboring properties continue to decline in value and the homeowners are now applying their reduced income towards a rental property.
Unfortunately, most banks don’t see it this way, or at least don’t have the incentive (yet) to change their approach.
Hopefully this will change.
…Soon….
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.