Principle Reduction Appeal letter from State Attorney Generals and the IMF sent to FHFA Acting Director
The Acting Director of the FHFA received a letter from 11 state Attorney Generals pressing him to allow both Freddie Mac and Fannie Mae to proceed with principle mortgage reductions. The AG’s argued for principle mortgage reductions on the basis of preserving assets and preventing unnecessary foreclosures. They further outlined that the qualifying guidelines for a principle reduction would have to consider all a homeowners debts – not just the mortgage payment – and be standardized in form, transparency and disclosure.
It is the hope of all involved, to give homeowners the incentive to maintain their mortgage payments which would have a direct result of lower foreclosures throughout the nation.
The IMF (International Monetary Fund) director, Christine Lagarde, added her appeal that the acting director of the FHFA seriously give consideration to the state Attorney General’s letter to reduce the American homeowner’s mortgage debt.
If the Acting Director allows the principal reduction appeal to prevail by agreeing to allow it – this could make a huge difference for the future of homeowners being able to stay in their homes and avoid foreclosure. Most strategic defaults would seriously grind to a halt. Short sales would no longer be necessary. The housing recovery could actually take off. Buyers would be able to buy. Sellers would be able to sell.
Principle Reduction on mortgage balances could mean the difference between keeping your home or losing it.
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