A Tax-Free Foreclosure Solution: Loan Mods Through the Courts
Court-supervised loan modifications would preserve home values—without using public funds—while providing fair terms to lenders. Over the next several years, 8.1 million American families will lose their homes. Because of market declines, these struggling homeowners can neither refinance nor sell. Unless their mortgages are modified to align the loan amount with the value of the home, the foreclosure crisis will continue to get worse. The damage of foreclosures extends beyond the families who lose their home: millions of their neighbors could also lose billions of dollars in hard-earned wealth...