Should Principal Reductions Be Made?

Many real estate investors are now saying that reducing the principal on underwater loans may be the next big step to prevent more foreclosures.

Banks are being requested by activists to consider principal reductions on underwater loans so the amount a borrower owes will be greatly reduced. The idea

is to provide borrowers an opportunity to continue to pay their monthly mortgage payments in a timely manner.

The largest lenders are starting to accept the idea even though a principal reduction can be a complicated transaction.

Although, many will say that write-downs are unfair to those who continue to make their payments. It will be interesting to see if and when all of this takes place.

There may be many people who are struggling to pay their mortgage but you may be one of many who are eligible for the new Home Buyer Credits. Please go to tax credit information for more details. This opportunity could help change your life for the better.

Allow me to help you explore the many wonderful opportunities to purchase a home in Hoboken. Whether it be a lovely condo, brownstone, Classic Victorian or anything in between; I guarantee you there is a home for you. Please contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City.  Eddie can be reached ateddie@InvestHoboken.com or 201-344-2886.