How long is the South Beach condo market going to take to fully recover? Foreclosures are still an issue, some lenders are steadfast in their refusal to tweak unmanageable mortgage loans and continued job losses are not making things any easier. What will happen when adjustable rate mortgage loans reset this year?
Among the several solutions that have been proposed, one of them involves allowing South Beach condo owners the option to have the principal of their loan reduced, if they’ve filed for bankruptcy that is. Judges are already capable of doing this with credit card debt and other forms of liability, meaning mortgage debt would no longer be the exception to the rule. This potential solution has been gaining traction, Citigroup being one of the larger companies to announce its support.
The biggest factors that may affect the success or failure of such a solution are jobs and sales, two things which aren’t doing too good at the moment. With the Obama administration’s ambitious economic stimulus plan, lower South Beach condo prices and government incentives, is this a step in the right direction?
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