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Them or Gage Market
Them or Gage Market
Them or Gage Market
GUARDIAN CAPITAL
THE MORTGAGE MARKET: NEW POLICY
Obama Administration announced on Friday another attempt to prevent an
overflow of foreclosures
Previous efforts to prevent foreclosures have been failures, for the most, part
because the incentives haven't been strong enough to get lenders to go along
The new plan increases the amount of money going to banks and other
lenders if they'll write down the principal of the loan
In most cases, the government's programs have merely postponed the
inevitable, allowing borrowers who can't afford their mortgage payments to
keep paying for a few months longer (so far, only about 200,000 mortgages
have been permanently modified into affordable home loans)
That is only a minor fix; it's expected that as many as 13 million
homeowners will lose their homes to foreclosure in the next five years,
according to a congressional oversight panel, meaning more bank write-
downs and a greater likelihood of a downturn in the mortgage market