Lowell Deeds

The latest on real estate recordings and new technology from the Middlesex North Registry of Deeds in Lowell

December 10, 2008

Reworking Mortgages

by @ 12:06 pm. Filed under Real Estate

Since pumping $700 billion dollars into our financial institutions seems not to have altered the downward spiral of our economy, many are now turning to the concept of “mortgage modification” as the antitote for our fiscal ills. The theorgy is rational - it’s better to have a current homeowner stay in the home and pay less each month on the mortgage than it would be to have the lender foreclose and end up with a vacant house which, if it was sold at all, would be for a sharply reduced rate, thereby contributing to further declines in the real estate market. The problem is, modifying mortgages is not an easy thing to do. A just released study reported in yesterday’s Boston Globe reveals that more than half of the homeowners in the study group who had their mortgages reworked still faced the loss of their homes after just six months. The article asks whether that’s because the modifications were insufficient to make a difference or whether the homeowners were just not cut out to own homes. It’s probably a little bit of both.

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