Loan modifications create mortgage slaves

Are you a mortgage slave?

Loan modifications create mortgage slaves.  That’s what Ramsey Su, a former REO broker, wrote in the Wall Street Journal last week about the foreclosure mess in the U.S. right now.  This article certainly has appliation in our own local market here in Prescott, AZ. 

He says that the efforts in Congress to push loan modifciation are a waste of time and even worse they force borrowers to continue paying on a home that is under water, versus foreclosure, which allows for a foundation of recovery.

 The Wall Street Journal Online

Indeed, it seems that some homeowners are willing to continue overpaying for their properties instead of making a clean break.  Credit may be affected, but it can be rebuilt, and renting a home will allow the folks to rebuild their credit and save up for a down payment on a home that they can really afford.

“If the intent is to help homeowners, then foreclosure is undoubtedly the best solution,”Su writes,”Foreclosures provide the foundation of recovery, both for Main Street and Wall Street.  As properties are foreclosed, they can move from weak hands to strong hands. Households that have been foreclosed upon today are the buyers of tomorrow, when given a chance to recover.”

This is a must read article for anyone looking to see why foreclosure is a beneficial process.

Read the full article here.

Other posts from around the world on this topic:

Suckers: slave to your mortgage

Are you a debt slave?

The borrower is slave to the lender

Are you a mortgage consumer or a mortgage slave?

For more information the foreclosure market in the Prescott Arizona area, please
contact me.  Patrick Schutte, Certified Foreclosure Specialist, 928-710-1717.