Recently, the New York Times ran an article entitled “Foreclosures Are Killing Us”. The writer states that due in part to a large increase in foreclosure filings in August, in addition to the $1 billion unemployed and underemployed housing program ending on Friday, this is the perfect storm to bring on a wave of further foreclosures – which the writer points out will lead to an increase in depression, illness and other negative effects in communities across the country.
Yes, we agree that being upside-down is very stressful for homeowners. But note, millions not in foreclosure are also upside down and still making payments; which is even more stressful.
Many have placed their hopes on loan modifications and principal balance reductions, both of which have failed to date. The reality is that a foreclosure or short sale is the only reliable option to get out from under mortgage debt today. So does that make foreclosure the killer? Or is it the cure? We feel it’s the latter. What do you think?