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The city of Newark, N.J., is moving forward with a foreclosure-prevention plan that could involve using the power of eminent domain to restructure underwater mortgages.
December 5 -
The prospect for principal reductions as a mortgage modification alternative has never looked as promising as it has with a number of important housing announcements over the last few weeks. The Federal Reserve's housing white paper, for instance, highlighted the need for more attention on principal reduction modifications, and it was featured again in the president's housing plan.
February 17 -
The mortgage-writedown program that the FHFA rejected would have produced little benefit to the housing market. But principal forgiveness, done right, can do a lot of good while minimizing potential harm.
August 8
Underwater homeowners in New York state may soon have a new way to reduce the principal on their mortgages.
The New York State Department of Financial Services has
Borrowers who do not qualify for other federal and private foreclosure-prevention programs would be eligible for the shared-appreciation program, according to a press release Tuesday from the department.
"For many homeowners and investors, this innovative approach to mortgage relief could prove to be a win-win," New York Gov. Andrew Cuomo said in the release. "First and foremost it will help keep more families in their homes and out of foreclosure, while at the same time reducing potential losses for investors. That's good for homeowners, good for local neighborhoods and good for the long-term strength of the housing market."
The proposed regulations will be open for public comment for 45 days, according to a department spokesman.
