3 Solutions for the Foreclosure Crisis — New York Real Estate

3 Solutions for the Foreclosure Crisis

by Raja Tayeb on November 5, 2010

foreclosure

Analysts say that despite all the fuss over foreclosures, there are really only three solutions. None of them will please everyone.

1. Refinance everybody at today’s ultra-low rates. The result would put money in people’s pockets and that would boost consumer spending. The downside is that some people would still be underwater, plus taxpayers aren’t in the mood to spend any more money.

2. Lean on lenders to forgive principal. Lenders have been opposed to this even when the government stepped in and shared the losses. Also, this solution makes many investors very unhappy.

3. Do nothing and let the market heal itself.
Supporters say an improving job market should erase part of the problem. The big downside to this strategy is the possibility that the market will slide back into recession.

We want to hear from our readers, is there another alternative or possible solution that can correct the foreclosure crisis?


Source: The Christian Science Monitor, Mark Trumbull (10/12/2010)

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