Forum Post: Banks Forgive Mortgages by the % of Equity Lost
Posted 13 years ago on Nov. 15, 2011, 10:06 p.m. EST by yankee48
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I'd like to start a petition that makes the banks forgive peoples mortgages by the same percentage of equity they have lost since 2008. Another words if you have lost 30% of the value of your home, the bank has to forgive 30% of your mortgage. People have no motivation to keep making payments on a home with little or no equity and most of them cannot refinance or get a modification out of the banks. This would stabilize the R.E. market at last, and begin to give people faith in owning their own home again. Most of us were planning to retire on the equity and now don't have any. There is an entire generation of 60 ish people forced out of the work place and now left with no equity to retire on. Your looking at millions more prospective homeless people. Anyone know how to get this ball started?
People who owe significantly more on their mortgage than their home is worth already have options under the current laws. Through a Chapter 13 Bankruptcy filing, homeowners can restructure their debts in order to renegotiate the bills that they owe and, most importantly, write down the amount due on their mortgage to its current fair market value.
"most of us were planning to retire on the equity". That line of thinking + bank greed + manipulation of interest rates = disaster we are in.
Sever lack of understand is apparent. Yes, let's stabilize a market by making the banks lose money. After all, they have unlimited funds and we deserve it right?
the banks have to be forced to lose money in order to force them to tend thier practices more toward creating jobs in america.